The meeting organised by the Italian ENI [ENI SpA] in Milan had it all: the way demand and consumption of oil and natural gas in the Mediterranean area will be shaped by 2040, what partnerships are expected to be formed, what of investments will there be and in what sectors, the prospect of further development of Renewable Energy Sources (RES), energy security and sufficiency.
What prompted this meeting was the forthcoming publication of the Mediterranean Energy Perspectives 2018 think tank at the end of April, which will record the potential of the oil and gas market over the next two decades in the Mediterranean region.
In particular, according to Mediterranean Energy Perspectives 2018 study, energy consumption in the Mediterranean countries is 40% up. It is necessary to modify the rural economy in order to reduce greenhouse gas emissions and to improve the energy performance of buildings. According to a moderate projection, it is expected that, by 2040, energy consumption will be increased by 13%. It is therefore necessary to combine different energy sources.
RES development… a clue of what awaits us
The two proposals of the Mediterranean Energy Perspectives 2018 study were based on the shape of the energy industry in the Mediterranean countries so far shaped by the challenges the energy industry is facing. Examples of these challenges are climate change, the need for wider RES growth and the guarantee of energy efficiency in buildings.
Hydroelectricity, biomass and, to a lesser extent, geothermal energy have the first say. The production of electrical energy from RES in the Mediterranean accounts for 11% of the total electric production. By 2040, two thirds of the installed capacity will be covered by RES. The technological development and new funding methods will work for RES’s own good as they will become more accessible.
The objective is, of course, to create a framework that is safe and in harmony with international and European directives on environmental protection, ensuring the development of a sound geopolitical and economic system for the well-being of all Mediterranean residents.
The gas industry’s growth, especially until 2037, will be even greater. The possibility of exporting gas to the Mediterranean is expected to be shaped within the next few years. Natural gas will be the regulator of the energy market as a whole.
It is highly anticipated that in all Mediterranean countries, innovation will be strengthened, particularly with regard to power systems, which will enhance the competitiveness of each country and of the European economy as a whole. At the same time, investment is expected to increase in this area.