Executive Summary

Innovation and technological change are integral to the energy system transformations described in the Global Energy Assessment (GEA) pathways. Energy technology innovations range from incremental improvements to radical breakthroughs and from technologies and infrastructure to social institutions and individual behaviors. This Executive Summary synthesizes the main policy-relevant findings of Chapter 24. Specific positive policy examples or key takehome messages are highlighted in italics.

The innovation process involves many stages – from research through to incubation, demonstration, (niche) market creation, and ultimately, widespread diffusion. Feedbacks between these stages influence progress and likely success, yet innovation outcomes are unavoidably uncertain. Innovations do not happen in isolation; interdependence and complexity are the rule under an increasingly globalized innovation system. Any emphasis on particular technologies or parts of the energy system, or technology policy that emphasizes only particular innovation stages or processes (e.g., an exclusive focus on energy supply from renewables, or an exclusive focus on Research and Development [R&D], or feed-in tariffs) is inadequate given the magnitude and multitude of challenges represented by the GEA objectives.

A first, even if incomplete, assessment of the entire global resource mobilization (investments) in both energy supply and demand-side technologies and across different innovation stages suggests current annual Research, Development & Demonstration (RD&D) investments of some US$50 billion, market formation investments (which rely on directed public policy support) of some US$150 billion, and an estimated US$1 trillion to US$5 trillion investments in mature energy supply and end-use technologies (technology diffusion).

Executive Summary

A number of factors contribute to the lack of access to modern forms of energy. They include low income levels, unequal income distribution, inequitable distribution of modern forms of energy, a lack of financial resources to build the necessary infrastructure, weak institutional and legal frameworks, and a lack of political commitment to the scaling up of services. An absence of specific policies oriented to poverty alleviation often explains inequitable economic growth and, consequently, inequality in access to and use of energy. In recent years, several developing countries have defined targets aimed at improving access to electricity, but many developing countries still have no modern forms of energy access targets in place that address meeting basic energy services, including modern fuels for cooking and mechanical power.

As Chapter 2 argues, developing countries require adequate access to modern energy, especially among the poor, in order to meet the Millennium Development Goals (MDGs) as well as their own national development objectives. In line with GEA objectives, Chapter 17 pathways are designed to describe transformative changes toward a more sustainable future. A specific feature of the GEA energy transition pathways is that they simultaneously achieve normative goals related to all major energy challenges, including environmental impacts of energy conversion and use, as well as energy security and energy access. ‘Energy access’ refers to those challenges clearly described in Chapter 19, which will be addressed in this chapter.

Affordable and sustainable universal access to modern forms of energy depends on the evolution of income level and income distribution.