Markets and investment

Global energy investment totalled more than USD 1.9 trillion in 2021, with the power and end-user sectors attracting more investment than traditional fuel production

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.

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

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

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

What's new?

Thailand signs first long-term US LNG deal

03/08/2022
The sale and purchase agreement (SPA) calls for a combination of free-onboard (FOB) and delivered ex-ship (DES) deliveries,* a customised structure re...

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EU taxonomy changes could lead to new nuclear projects and more expensive gas

03/08/2022
The challenge for gas is twofold: abatement technologies are not yet market-ready at scale and their costs, once implemented, are likely to boost pric...

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UK launches biggest electricity market reform in a generation

27/07/2022
In what could be the biggest electricity market shake up in decades, the Review of Electricity Market Arrangements (REMA) will seek views on a wide ra...

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The sky isn’t the limit as the UK strives to reach net zero

27/07/2022
The new Jet Zero strategy commits UK domestic aviation to achieving net zero emissions by 2040 and for all airports in England to be zero emission by ...

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Renewable power remains cost-competitive amid fossil fuel crisis

20/07/2022
Its new report says that costs for renewable power generation continued to fall in 2021 as supply chain challenges and rising commodity prices have ye...

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Events and training

Introduction to LNG - November 2021

07/11/2022
This 2-day training course provides an introduction to the LNG chain. Suitable for students who are new to the LNG sector and/or those with a non-tech...

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Economics of the Oil and Gas Industry - November 2022

14/11/2022
A 2-day introduction to the economics of the oil and gas industry. This course is suitable for students who are new to the oil and gas industry.

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CQRM - Certified in Quantitative Risk Management - November 2022

14/11/2022
This 4-day Certified in Quantitative Risk Management training course is classroom based and will teach delegates how to acquire updated and practical ...

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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

2012
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Financial investment in energy efficiency

2008
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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