Markets and investment

Global energy investment totalled more than USD 1.8 trillion in 2018, with the power sector attracting more investment than the oil and gas industry for the third year in a row

Energy markets focus on the trade and supply of electricity, gas and liquid fuels. They consist of three main elements: generation or production, transmission and distribution, and supply. Once electricity is generated or gas and oil is produced, it is sold on the wholesale market to suppliers, who sell it on to consumers and arrange for its delivery. It is distributed to homes and businesses through transmission and distribution systems. Depending on a country’s government policy, these elements of energy markets may be nationalised or privatised. Energy markets are closely regulated to ensure secure access to energy at fair prices, since energy is a necessity for sustained economic output and human welfare. Energy markets in the UK are privatised and regulated by the Office of Gas and Electricity Markets (Ofgem), which is responsible for protecting the interest of consumers by promoting fair competition. UK energy markets have recently experienced significant changes due to diversification of electricity generation through the rise of renewable energy sources, as well as the addition of many new suppliers.

Around the world, investments in the energy system are shifting, with increasing funds flowing into renewables, grid flexibility mechanisms, and low carbon transport. An appropriate policy and regulatory environment is required for continued investment towards a low carbon economy while maintaining energy security. The low carbon transition often requires the government to drive and guide private spending since investments in low carbon energy infrastructure are often capital-intensive and require long-term returns. There is growing need for new market structures to be defined and existing ones to play different roles in order to encourage low carbon investments across all sectors of energy, while also keeping the energy system stable and conventional sources flowing. Increased interconnection is also an option for moving towards more sustainable and cost-effective energy systems; integration of national energy systems through cross-border infrastructure can redefine investment agendas.

For the latest news and articles on energy pricing read New Energy World.

Learn more about markets and investment by reading our Energy Insights.

View upcoming finanace and investment consultations and policies on our Policy Milestones Calendar.

What's new?

San Francisco refinery to be converted to renewable fuels facility

The project, which recently received approval from Contra Costa County, is expected to cost approximately $850mn and is due to begin commercial operat...

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John Lewis and Waitrose Partners become EnergyAware

As part of its pledge to be a net zero business by 2035, the Partnership is engaging with the Energy Institute (EI) to roll out the EI’s EnergyAware b...

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Global energy markets face unprecedented uncertainty and a 1.5°C pathway remains increasingly challenging

Including analysis to help calibrate the invasion of Ukraine with the longer-term energy transition momentum, the report presents five energy scenario...

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Gas price volatility rises after Russia halts gas exports to Poland and Bulgaria

Russia’s decision to cut off gas flows to Poland and Bulgaria will significantly impact these two countries, although the knock-on effects should be m...

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EBRD lends €20mn to upgrade Bosnia’s electricity transmission grid

In turn, this is expected to reduce grid electricity losses, improve system reliability and increase readiness for integrating additional intermittent...

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Events and training

EI-YPN Virtual Connect (Nigeria Branch)

EI-YPN Virtual Connect (Nigeria Branch) EI-YPN Virtual Connect (Nigeria Branch)

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FOOTPRINT+ The New UK Property Event for a Zero Carbon Future

3000 attendees 150+ speakers on 4 stages 100+ exhibitors 50+ fringe events For more information and to book your place, please visit: https://w...

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Economics of the Oil and Gas Industry - Nigeria


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CQRM - Certified in Quantitative Risk Management - September 2022

This 4-day CQRM - Certified in Quantitative Risk Management training course will teach delegates how to acquire updated and practical knowledge in ris...

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Technical guidance publications

Proceedings of the 20th World Petroleum Congress. Energy Solutions for All: Promoting Cooperation, Innovation and Investment. 4-8 December, 2011, Doha, Qatar

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Financial investment in energy efficiency

Taken from Croner's Energy Management loose-leaf manual, this 30-page module identifies a number of accountancy techniques to help energy managers qua...

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