Energy Security (Cambridge (CIE) AS Environmental Management)

Causes of Energy Insecurity

• Energy security can be defined as the reliable availability of energy sources at an affordable price with a consideration of the environmental impacts

• Energy security refers to the availability, reliability and affordability of energy sources to meet a country's needs:

  • Adequate supply of energy ensures that there is enough energy available to meet the demands of individuals, industries and the overall economy

  • Reliable supply of energy means that the energy sources can be consistently accessed and delivered without disruptions or shortages

  • Affordable energy supply ensures that energy is priced reasonably, allowing individuals and businesses to access and afford the energy they need

• Energy independence is an important aspect of energy security, referring to a country's ability to produce or procure its own energy resources without relying heavily on imports from other nations:

  • Diversification of energy sources and supply routes can enhance energy security by reducing dependence on a single source or supplier

  • Developing domestic energy resources, such as renewable energy or domestic fossil fuel reserves, can contribute to energy security by reducing reliance on external sources

  • International cooperation and collaboration in energy markets and policies can contribute to energy security by promoting stable and transparent energy trade relationships

• Energy efficiency and energy conservation play a crucial role in enhancing energy security by reducing overall energy demand and dependence on energy imports

• Energy-secure countries are those that will be able to meet all or most of their energy demands from within their country

Short-term & Long-term Energy Security

• Energy security encompasses both short-term and long-term considerations to maintain a reliable and resilient energy supply system

• Short-term energy security:

  • This requires systems that can react promptly to sudden changes in the supply-demand balance, and includes:

    • Establishing robust mechanisms and contingency plans to be able to adjust to unexpected disruptions or fluctuations in energy supply and demand

    • Implementing responsive energy management systems, such as flexibility within national electricity grids, to balance supply and demand in real-time

    • Having strategies in place to minimise the impact of emergencies, natural disasters or geopolitical events on energy supply chains

• Long-term energy security:

  • This requires a supply of energy that is in line with economic developments and environmental needs, and includes:

    • Ensuring the availability of energy resources that support sustainable economic growth without causing irreversible environmental damage

    • Promoting the transition towards renewable and clean energy sources to reduce dependence on finite fossil fuels and mitigate climate-change impacts

    • Investing in diversified energy sources and advanced technologies to enhance energy efficiency

What Are the Causes of Energy Insecurity?

• Energy insecurity is caused by various factors that stop the reliable and sustainable supply of energy resources, impacting economic stability, social well-being and environmental sustainability:

  • Understanding the root causes of energy insecurity is crucial for developing effective strategies to address energy challenges and helping countries to have greater energy resilience

• Fossil fuel depletion:

  • Explanation: depletion of finite fossil fuel reserves, such as coal, oil and natural gas, leads to increased extraction costs and supply constraints, resulting in energy insecurity

  • Impact: reliance on shrinking fossil fuel stocks increases energy price volatility (i.e. the amount and speed at which energy prices can change) and exposes economies to supply disruptions and uncertainties in the fossil fuel energy market

• Inequality in global energy resources:

  • Explanation: disparities in access to energy resources across regions and countries, with some nations possessing abundant energy reserves while others rely heavily on imports

  • Impact: unequal distribution of energy resources increases geopolitical tensions, economic disparities and dependence on external energy sources, contributing to energy insecurity

• Population growth:

  • Explanation: rapid population growth can strain a country's energy infrastructure and resources, increasing energy demand and competition for limited energy supplies

  • Impact: population growth drives up energy consumption, placing pressure on energy systems and infrastructure, particularly in urban areas, where energy demand is highly concentrated

• Differing energy needs of countries in different income groups:

  • Explanation: there can be large variations in energy consumption patterns and requirements between countries with different income levels (e.g. between LICs and HICs), due to disparities in industrialisation, development and the lifestyles of their populations

  • Impact: developing countries and LICs may face energy deficits due to inadequate infrastructure and investment, slowing socio-economic progress and increasing energy insecurity

• Climate change:

  • Explanation: climate change impacts, such as rising temperatures, extreme weather events and sea-level rise, disrupt energy production, distribution and infrastructure

  • Impact: climate-induced disruptions can cause significant issues for energy systems, particularly affecting vulnerable sectors like agriculture, water supply and energy-intensive industries

• Supply disruption:

  • Explanation: disruptions to energy supply chains can be caused by natural disasters, piracy, terrorism, political instability or conflicts in energy-producing regions

  • Impact: supply disruptions disrupt energy flows, leading to energy shortages, price spikes and economic disruptions

Impacts of Energy Insecurity

• Energy insecurity is creating significant challenges for societies worldwide, affecting individuals, communities and economies in various ways:

  • Understanding the impacts of energy insecurity is essential for addressing the underlying causes and implementing effective solutions to ensure access to reliable and affordable energy for all people and societies

What Are the Impacts of Energy Insecurity?

• Disrupted electricity supply to homes and industry:

  • Energy insecurity can lead to frequent power outages and blackouts, affecting households, businesses and essential services such as hospitals and schools

  • Interruptions in electricity supply disrupt daily activities, compromise productivity and slow down economic development

• Increasing prices for energy resources:

  • Energy insecurity often results in volatile energy markets (i.e. the market can change quickly and be highly unpredictable) and escalating prices for fossil fuels and electricity

  • Higher energy costs are a financial burden for households, result in increased production costs for businesses and contribute to inflation, putting pressure on the economy

• Increasing costs for industry:

  • Industries reliant on energy-intensive processes face higher operational costs due to energy insecurity

  • Rising energy expenses reduce competitiveness in global markets, leading to smaller businesses losing their market share and decreasing their profitability

• Job losses, economic recession:

  • Energy insecurity can trigger economic downturns and job losses in energy-dependent sectors, such as manufacturing, transportation and construction

  • Reduced economic activity and consumer spending then contributes to recession-related pressures and increased unemployment rates

• Increased levels of poverty and low standards of living:

  • Energy insecurity disproportionately affects vulnerable populations, increasing poverty levels in these populations and widening socioeconomic disparities between regions and countries

  • High energy costs force households to allocate more income towards basic energy needs, leaving less for essential goods and services, such as food, healthcare and education.

• Reliance on imported sources of energy:

  • Countries heavily dependent on imported energy sources are vulnerable to supply disruptions, geopolitical tensions and price fluctuations in global energy markets

• Civil disruption and conflict:

  • Energy insecurity can contribute to civil unrest, social instability and geopolitical tensions, particularly in regions that rely heavily on energy exports or those currently facing energy scarcity

  • Competition over energy resources may escalate into conflicts, resulting in humanitarian crises and displacing populations, leading to increases in immigration