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Iceland in the World Energy Issue Monitor Report 2018

2.11.2018

Iceland participated in the World Energy Issues Monitor report for the second time 2017 

The report provides a snapshot of what keeps CEOs, Ministers and experts awake at night in over 90 countries.  The monitor helps to define the world energy agenda and its evolution over time. It provides a high-level perception of what constitute issues of critical uncertainty, in contrast to those that require immediate action or act as developing signals for the future. It is an essential tool for understanding the complex and uncertain environment in which energy leaders must operate, and a tool through which one can challenge own assumptions on the key drivers within the energy landscape.

This ninth iteration of the monitor is based on insights provided by more than 1,200 energy leaders to provide over 30 national assessments across six regions. 2018 will see the launch of a new interactive online tool for visualising the data that underpins the Issues Monitor, developed in collaboration with the Project Supporter ARUP.

 Iceland – Key Issues

The greatest change and movements of individual parameters in the survey in Iceland from 2016 to 2017 are associated with cyber threats, renewable energy and electric storage. Along with data AI, the uncertainties around these issues most likely reflect a similar perception in the global scenario. Concerns around the exchange rate are still relevant and relate to the volatility of the Icelandic krona, which has appreciated about 30% from 2015 – 2017. In the energy sector, this is mostly significant in the area of export of consulting services and energy products which are usually traded in foreign currencies, while the operational costs are exchanged in local currency. In addition, the capital intensity of the energy industry the prevalence of loans in foreign currencies are expected to affect the overall operational and financial risk and cost of investors.

The climate issue continues driving efforts in Iceland as the country is challenged with lowering emissions. Developments around electric storage and great competitiveness of the power market drive action while strong similarities with issues faced by developing economies of Africa, especially around capital markets, illustrate the issues that keep Iceland’s leaders busy at work and awake at night.

 The report can be seen here – Iceland at page 64.