April 10, 2024

“Business and government need to work together in order to overcome the urgent global energy and economic challenges that we face. The International Energy Agency (IEA) has been a platform for governments to work together to find solutions for 35 years. However, we did not have a CEO-level group that focused on both the demand and supply sides of energy challenges and would provide feedback to IEA ministers. The IEA Energy Business Council was established today. This changed everything. Nobuo Tanaka is the Executive Director of the International Energy Agency. He added: “I’m excited to inaugurate this group of high-level consultants, which will produce new ideas and tangible outcomes.”

Global energy group covers the globe.

The EBC, a group of 25 executives representing a variety of companies engaged in energy exploration and production as well as consumption, was formed by the EBC. The members range from automobile manufacturers, commodities companies, wind, and solar energy producers, as well as industry associations. EBC’s members are involved in international operations. As we examine global issues such as climate change and energy markets, it’s important to have a view that goes beyond borders. These companies bring a wealth of business experience and knowledge from around the globe that will help us see things differently as we tackle global challenges.

Seeking greater assurance in the face of financial crises and climate change

The IEA World Energy Outlook 2009 highlighted the importance of investing in the energy sector to not only meet the new demand but also to offset the decline rates of current production. Massive amounts of investment are also needed to develop new technologies for energy to meet climate change goals. Extreme price volatility, uncertainty over future government policies, especially with regard to climate change, and, most recently, the global financial crises have all raised concerns about the lack of investment. Companies are afraid to invest because rules and prices are constantly changing,” said Dr. Birol. “Because the private sector historically accounts for the majority of energy sector investment, it is important for governments to understand the types of stable long-term policy frameworks that are needed to stimulate investment.” It is especially important now that governments are launching stimulus programs to stimulate economic growth and before nations gather in Copenhagen to create a new climate accord.

The next step will be the IEA Ministerial meeting in October.

Next, the EBC will meet in Paris just before the bi-annual IEA Ministerial Meeting in October 2009. The members will be asked to present the results of the discussions they had with the Ministers and to suggest new projects and collaboration. The time has come for a high-level dialogue between government and industry on energy. “The IEA is delighted to host this dialog,” concluded Mr. Tanaka.

  • Transport
  • Solar
  • Bioenergy
  • Other Renewables
  • Energy efficiency
  • Energy storage
  • Hydrogen
  • fuel cells

Deals in transport drove the growth of energy VC in recent years, but non-transport sales now account for more than half the value of contracts in 2019. It is too early to tell if this indicates a rebalancing of sectors following a recent flurry around electric vehicles. Early-stage VC funds in 2019 went to Hozon AutomobileEnovate Motors (both Chinese companies developing performance electric cars), Commonwealth Fusion, a designer of a nuclear fusion system with a lower cost, CalBio (producers of new biogas digestion systems), and Faraday Grid – an inventor of innovative power grid transformers.

These numbers reveal two distinct trends that are a reflection of a sector in flux.

The growing value of deals is a result of fewer but larger transactions. The number of VC investments in energy start-ups has not increased. Even after excluding all sales exceeding USD 50 million, average deal sizes in the first six months of 2019 were higher than any other year since 2012.

 

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