In this insightful interview, IEN member and author Marco Montefiori, discusses the evolving energy ecosystem and challenges and opportunities shaping the energy landscape today. He delves into the critical themes of his latest book, Energy Citizenship: The Energy-Power Equation Explained, which explores the intricate relationship between energy, political power, and societal resilience. He shares his vision for a more energy-literate society capable of influencing sustainable policies and fostering innovation.
You have been in the energy sector for decades. How have you seen the global energy market evolve in recent years?
There are many ways one can interpret the recent evolution in the energy markets. One interesting way is to look at it as an attempt to destabilize the status quo in global power balance, and pursue relative power gains. Two are the actual drivers: business and politics.
How have you seen the transition from fossil fuels to renewable energy sources unfold?
The process has been full of surprises. Rather than a transition, we are witnessing an addition of wind and solar to fossil fuels. One of its main champions – Germany – has been the most notable victim of the energy transition. A new comer and champion of electrification, Elon Mask, has managed to concentrate an abnormal amount of power, combining his role of business owner and member of the US administration.
You’ve recently written the book Energy Citizenship: the energy–power equation explained. What is the book about?
Energy Citizenship provides simple, non technical tools for everyone to interpret reality through the lenses of energy.
Readers who praised the book include members of electricity state owned companies in Africa, serial entrepreneurs in Europe, energy traders in the Middle East, energy lobbyists in the US, as well as nuclear engineers, psychologists, coaches, professors from some of the world leading business schools, globally recognized thought leaders, and board members for some of the largest companies.
I like to quote an energy-tech entrepreneur who has defined “Energy Citizenship: the energy–power equation explained” as a book on energy philosophy. The reason is that it demonstrates how power – both at individual and societal level – originates from energy.
What key messages do you hope readers will take away?
The key message is that a long-term sustainable energy transition requires the focus of decision makers to be not only on energy supply, but – equally importantly – on energy education, efficiency, and demand.
What inspired you to write this book?
Honest and candid conversations with large energy-focused investment funds, energy tech startups, and established global energy players were the inspiration.
These exchanges helped me identify the elephant in the room in the energy transition debate: siloed thinking.
They also helped me define the way forward: the very nature of energy is unfit for siloed thinking. Consider the challenges of storing energy as a practical depiction of this conceptual issue.
Why do you think understanding the energy–power equation is especially important today?
Understanding the energy–power equation is the first step to raising the status of energy from a cost item to a strategic resource.
Once governance bodies adopt energy as a driver for strategic decisions, then tackling unwanted externalities of the energy system – e.g. GHG emissions, loss of competitiveness, energy dependence, global power shift, – will become less of a challenge.
Something as complex as the loss of competitiveness of Europe, or the leading role of China in the energy transition, would be easier to understand through the energy lenses. This book provides a compass to interpret and navigate the current affairs.
How do you see the concept of “energy citizenship” influencing future energy policies?
Energy Citizenship expands the toolkit for policy and decision makers.
It outlines an energy-based decision framework that complements and strengthens classic short-term financial / economic / monetary methodologies.
Understanding energy demand would allow tailoring policies which are fit for purpose. Understanding energy efficiency would make the system more energy resilient and secure. Understanding the essence of the laws of physics, would help prioritize investment decisions and de-risk investment strategies.
Do you believe the innovation that will drive the energy transition will come primarily from the energy startups ecosystem as it is today?
The software and hardware innovation required to drive the transformation of an energy system can be very expensive. Its implementation can be very complex. Start up will keep making the headlines but only a tiny minority will succeed.
The recent bankruptcy of too-big-too-fail wannabe European battery champion Northvolt indicates that the success of a start up does not depend only of availability of funds, talents, support from institutional investors.
If not, what is missing in the current landscape?
Building the right culture is essential. Rebalancing the focus to include energy education, efficiency and demand is key to innovation and long-lasting competitive advantages.
Think about the impact of Artificial Intelligence / data centres on the electric energy demand – and supply. Tech companies are leading the nuclear renaissance, and energy incumbents are catching up. This is an example of demand driven disruption.
How can we bridge that cultural gap?
The starting point lies in education.
Curricula – from primary schools to executive, and board education – should include energy in non technical terms.
We are working on it. For example, together with energy companies and educational institutions we developed programs to be deployed at national level this year. There is a tremendous opportunity in this space.