The COVID-19 pandemic has created a global health and economic crisis that is affecting us all. The electricity sector has proved resilient and is playing a critical role in the response and recovery efforts, and we need to seize the opportunity to accelerate the transition to a cleaner energy system.
In April 2020, the World Economic Forum (WEF) announced the creation of exclusive CEO communities called Industry Action Groups (IAG to focus on response and recovery efforts. Claudio Facchin, CEO, Hitachi ABB Power Grids was on the select CEO panel for the Energy sector.
The select CEO “Board” came together for four virtual, formal meetings through to September, to deliberate on proposals prepared by their Senior Deputy working group in conjunction with WEF and Accenture. Harmeet Bawa, global Head of Government and Institutional Relations, supported Claudio and represented Hitachi ABB Power Grids on this forum.
One of the main outcomes of the project was to develop a framework that quantifies and qualifies the “system value” of solutions that drive a sustainable economic and energy system recovery. The framework aims to shift political and commercial focus beyond cost to include value. Policies, investments, and solutions can be evaluated to assess their impact on the outcomes that the electricity system of the future should support. A System Value lens enables leaders to evaluate economic, environmental, social and technical outcomes of potential energy solutions across markets.
“As the world addresses COVID-19 and prepares for the ‘new norm’, we need to push for an accelerated energy transition. The ‘system value’ approach developed with WEF, encompassing social, economic and environmental values can facilitate this journey”, says Hitachi ABB Power Grids CEO, Claudio Facchin. “The right policies and regulatory environment supported by collaboration across stakeholders will be a key success factor in the path to maximize System Value, as we write the future of sustainable energy by enabling a stronger, smarter and greener power grid”
The System Value framework was tested and refined through analyses of recovery solutions in 6 markets and reviewed with over 50 stakeholders, including the CEOs and their senior deputies.
The findings of these analyses revealed a logical order to the clean energy transition, which articulated in the “Path to Reset through System Value”. Core elements common to all markets include renewables, grids and efficiency.
The path to maximise System Value
“The overall objective of this project was to develop a common industry approach and response to the current crisis and drive the acceleration of the clean energy transition”, says Harmeet Bawa, global Head of Government and Institutional Relations, Hitachi ABB Power Grids. “The CEOs and the working group task force, facilitated by WEF and Accenture, worked with a common sense of purpose and spirit of co-operation, highlighting by example that collaboration across stakeholders will indeed be a key success factor in fostering a more sustainable energy future.”
Other deliverables from the project included:
- recommendations for stimulus packages, policies and other actions to accelerate the clean energy transition
- a common narrative highlighting how the clean energy transition brings value to society and economy.