Report on the Asia Pacific Energy Leaders’ Summit APEC EWG 51 Canberra, May 2016

Report: Asia Pacific Energy Leaders’ Summit Attended by 200 business practitioners, energy experts and policy-makers from 30 economies Delegates gained an appreciation of the complex and multiple characteristics of energy resilience through panel discussions with experts, politicians and business leaders Priority issues identified: extreme weather events (climate change) energy-water nexus In March this year, the World Energy Council and the BusinessNZ Energy Council hosted the inaugural Asia-Pacific Energy Leaders' Summit in Wellington Under the theme of ‘Delivering resilient energy infrastructure’, the event brought together 200 political and business leaders from 30 over economies, to better understand the growing resiliency risks and challenges presented by: climate change, emerging technologies, extreme weather events, cyber security, and the energy water-food nexus. The Summit gave leaders an opportunity to share the resiliency issues and challenges they faced and how to manage them as they look to deploy renewable energy systems.

Why host an Energy Leaders’ Summit? Opportunity to further our understanding of resilience- post Canterbury earthquakes Promote resiliency amongst the private sector in New Zealand and move the conversation from security to resiliency Promote NZ’s expertise, innovation and experiences in deregulated energy markets The 2011 Canterbury Earthquake was a stark reminder of the devastating impact natural disasters can have on a city. Of interest, Orion’s electricity and gas infrastructure held up quite well, giving us quality data on our infrastructure. We are now seeing the network built back stronger, smarter and more resilient to all forms of natural hazards. As part of the rebuild, we need to ensure that resilience remains paramount – not just in the sturdiness of pipes, poles, and wires but to ensure we successfully navigate the energy transition. Natural disasters have become more frequent over the past 20 years, and the costs of the damages and losses associated with them are rising. At the same time, the world is increasingly reliant on electricity, and the population expects reliable, stable, and secure services

Key messages from the Summit APEC economies face common resiliency challenges from natural disasters In 2015, over half of the 344 global disasters occurred in the APEC region- at cost of $45Bn climate change will increase risk exposure to regional energy infrastructure A more ‘integrated risk management’ approach to emergency preparedness and energy resilience strategies to mitigate supply chain disruptions is required Some key messages from the Summit.. APEC economies face common resiliency challenges from natural disasters In 2015, over half of the 344 global disasters occurred in the APEC region- at cost of $45Bn climate change will amplify the intensity of extreme weather events A more ‘integrated risk management’ approach to emergency preparedness and energy resilience strategies is needed to mitigate supply chain disruptions

Key messages from the Summit Deployment of new technologies can mitigate the effects of climate change, while enhancing resiliency (e.g. energy storage) and improve energy security Rapid deployment of new technology requires international collaboration, and coordination between private and public sectors, to ensure growth and prosperity- this needs to be addressed now Deployment of new technologies such as EVs can mitigate the effects of climate change, while providing resiliency solutions in adaption (e.g. energy storage) and improve energy security Rapid deployment of new technology needs international collaboration, and between private and public sectors

Areas for further discussion Integrating resilience requires multidisciplinary and cross-sectoral approaches How do we de-risk the insurance and private sectors, to provide confidence for investment? Mechanisms for financing energy resilience need further investigation/promotion Who finances resiliency? Consumers, taxpayers or investors? What innovative financial instruments are required to provide certainty for investors? All economies face resiliency challenges, some common, some unique, all require complex solutions How do we collaborate to develop integrated risk management strategies? Are we doing enough to deploy new technologies? Complex energy systems may require complex solutions For investments to be attractive to the private sector, investors need to have confidence that projects will meet risk–reward expectations. Energy investments are long term, making them highly susceptible to existing risks – such as political and regulatory, construction, operational, market or currency risk – and also increasingly to emerging risks. Investors need to understand the financial benefits of resilience – for example, more stable revenue streams, or the ability to recover the cost of investments through regulated tariffs.

Asia Pacific Energy Leaders’ Summit V2.0? BusinessNZ and the World Energy Council are interested to continue the energy resilience dialogue The Summit organisers are interested in hearing from any economy keen to host the next Asia Pacific Energy Leaders’ Summit Potential for an EWG collaborative project?

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