On 24th of October European Business Network held a breakfast meeting in which a Management Consultant Dr. Gintaras Gavėnas explained What do evolutions in global energy trends mean for companies in Lithuania.
He started his presentation with an overview of current megantrends in energy policy. These include rising energy demand, diminished salience of global climate change policy, “green revolution”, rising energy nationalism and imperialism and others.
For example, global energy demand is expected to rise by 26 percent over the next two decades – by 2030 energy consumption in developing countries will increase by 45 percent, compared to an increase of 2,5 percent in developed countries.
The main long-run drivers of this increase are population growth, economic expansion and urbanization.
Lithuania is no different and will follow European pattern of consumption and the GDP per capital growth will be the main reason for this.
G.Gavėnas also asked if Lithuania cares about climate change. In his opinion, not quite. The main indicators for this answer are gas-fueled Elektrenai plant and solar panel scandal, while wind power and biomass power are continued to be subsidized.
The EBN guest also touched the topic of rising energy nationalism. He pointed out that governments with substantial natural resource reserves are securing greater economic benefits from their exploitation or are utilizing them for political gain.
Such countries like Argentina, Bolivia, Russia, Qatar and Iran with their nationalized energy companies are doing exactly that.
The speaker expressed a hope that technological innovations and market economy can solve this problem.
They can find solutions for energy efficiency, energy storage, energy transportation, among others.
Also, a market economy for energy sector can create a more efficient economic utilization of energy, ability to sell new technologies and bring energy closer, faster and cheaper for the consumer.
EBN reporter Edgaras Savickas.