22nd Edition World Energy Markets Observatory

In pursuit of a “better normal”

The 22nd edition World Energy Markets Observatory (WEMO) reveals a world struggling to take deliberate and drastic steps against climate change while simultaneously addressing the immediate challenges related to the COVID-19 pandemic.

This year’s World Energy Markets Observatory report explores how the energy sector can balance these competing priorities. Here we present practical ideas for how utilities, policymakers and private companies can embrace a strategy that builds short-term resiliency while improving long-term sustainability.

  1. Energy demand slowed in 2019, though global GHG emissions continued to grow.

Global energy consumption grew at a modest rate of 0.7%. While energy-related CO2 emissions are down 0.4%, total global GHG emissions have risen 0.6%. Our research reveals that even in Europe, the most advanced region in terms of climate change, current policies and measures fall well short of long-term decarbonization objectives and the 1.5-2° scenario identified by the International Energy Agency (IEA).

  1. The use of renewables will accelerate as generation and storage technologies continue to mature.

2019 worldwide investments in wind and solar climbed 3% while European capacity surged by 42%. Batteries remain a critical enabler of at-scale adoption of intermittent renewable generation—a promise that may be realized as production costs continue to fall and new megafactories are being planned worldwide.

  1. Green recovery packages related to COVID-19 can help accelerate the climate change agenda.

COVID-19 may be an unlikely impetus for change if governments leverage economic stimulus bills and recovery packages to accelerate and prioritize “green” initiatives. Our research indicates some leverage in recovery packages to do this, including: increasing the share of renewables and green hydrogen, especially within the mobility sector; electrifying some usages, such as EV development; refurbishing buildings to support energy efficiency measures; enabling the smart grid at scale to support industry transformation as well as commodities and networks convergence; and encouraging incremental behavior change among consumers, including a reduction in travel.

  1. Oil & Gas majors are diversifying their business, though many need to invest more outside the core.

Unprecedented levels of disruption and volatility within the O&G industry have significantly impacted organizations’ profitability and put pressure on their license to operate. As carbon pressure on core products continues to mount, O&G companies will need to develop a long-term strategy to diversify their revenue from traditional production. For many organizations, this means pursuing options outside the core area of business of pure oil and gas exploration and production. At present, the majority of organizations—with the exception of EU majors—invest just 1% outside the core business.

  1. Utilities transformation roadmaps must be reconsidered post COVID.

As the energy sector grapples with the effects of the global pandemic, a transformation strategy based on the shift to energy services is no longer a viable growth opportunity. Organizations must refocus their digital transformation agenda around the acceleration and the prioritization of energy transition.

This year’s results are showcased in an interactive eBook. Access or download the book for more details about our findings, additional data and insights from our global team of energy experts.

The World Energy Markets Observatory (WEMO) is Capgemini’s annual thought leadership and research report that tracks the development and transformation of electricity and gas markets in Europe, North America, Australia, Southeast Asia, India and China. Now in its 22nd edition, WEMO examines the following topics: climate change & regulatory policies; energy transition; infrastructure & adequacy of supply; supply & final customer; transformation; and financials.

Please fill in the form to download the report:

Click here to access the full report. You will also receive an email with the report and our new interactive e-book. To access the interactive digital E-book, click here.

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WEMO Global Insights In...

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Key Finding Articles

Climate Change and Sustainability

How the energy sector is helping private and public organizations to achieve climate change...

World Energy Markets Observatory: Energy Transition

How Li-ion batteries and grid modernization can accelerate energy players’ transformation...

Energy and geopolitics are strongly intertwined

This trend of de-globalization has been amplified by the COVID-19 crisis.

Making carbon neutrality a reality

Six energy industry recommendations for creating a more sustainable and resilient world from...

World Energy Markets Observatory: Transformation

Recasting the transformation agenda to enable growth and advance energy transition efforts in...

Editorals from our Experts

Climate Change

Key Climate Change and Energy Transition Takeaways

The share of renewables is growing—and reliability becomes a concern

Creating a better normal

By 2030, 70% of transport fuel will still be petroleum based despite ambitious e-mobility...

Energy and Utilities

North America: Transforming the energy sector at speed and scale

COVID-19 has inadvertently led to the “urgent and unprecedented” action the scientific...

Expert Perspectives

Colette Lewiner, Senior Energy Advisor to Capgemini Chairman

“Our planet remains far from reaching our global climate objectives. Extension of the 2019 trajectory would lead to a global temperature increase of 3.1-3.7°C by 2050–well above the 1.5-2°C threshold experts recommend. This year’s World Energy Markets Observatory makes the case for why the sector must act—and what the best path forward may be.”

Philippe Vié, Vice President and Sector Head for Energy, Utilities and Chemicals, Capgemini

“In this year’s World Energy Markets Observatory, we see the need to take a more ambitious and concrete plan to address the dire need for climate action—and COVID may be an unlikely impetus for change. As governments pass economic stimulus bills and recovery packages, it is possible to prioritize “green” initiatives, accelerating energy transition and sustainability goals.”

Randy Cozzens, Executive Vice President and North America Sector Head of Energy, Utilities and Chemicals

“We conclude this year’s WEMO with a now-familiar call for radical change to address climate change. While virtually every organization understands what’s at stake, companies’ transformation plans tend to be far more conservative, as the business grapples with costs, risk and returns. In publishing our WEMO report, we aim to help organizations understand some of the latest digital and sector technologies, business models and data and analytics that could help shape a high-value transformation agenda.”

Regional Insights

World Energy Markets Observatory: North America

2019 saw a continuation of North America’s struggle to address climate change

World Energy Markets Observatory: Australia

Green energy sources are now responsible for 24% of Australia’s total electricity...

Our Global Experts

Philippe Vié

Philippe Vié is the Global Energy, Utilities and Chemicals Sector Leader at Capgemini, and has been in the industry for over 25 years leading transformation projects globally.

Randall Cozzens

I collaborate with the Business Units in North America to drive Capgemini’s strategic growth agenda. Our NA Go To Market teams develop and nurture client relationships; understand the clients’ critical business issues; and architect innovative, fit-for-purpose solutions to drive tangible business value relative to the critical business issues.

James Forrest

As a global leader in our Energy and Utilities business, I help my clients with major business transformations involving smart grid, IOT, the reform of gas and electricity markets, major software and infrastructure changes and use of machine learning and artificial intelligence to drive significant business performance improvement.