Diversi昀椀cation is critical for a secure and economic maintenance, extreme weather events or 昀椀nancial energy system as it reduces dependency, enhances shocks (e.g. price volatility). Stability enhancements resilience, manages economic risks, fosters innovation which strengthen the reliability and resilience of the and competitiveness, and supports sustainability system have never been more important or more goals. Countries with energy security challenges 12 Force majeure events, including challenging”. 13 14 have typically failed to diversify either their domestic cold snaps in New York, heatwaves in Japan, 15 energy mix or their energy import partners, or both; and earthquakes in Turkey and Syria, have shown some of the results have been seen in recent months countries that grid operations need to be able to in Europe. The ETI shows that out of 29 advanced recover quickly in the event of tail-risk scenarios. economies, eight have fuel import dependency on just As energy systems become more interconnected three trade partners for over 70% of their net energy and reliant on advanced technologies, such as imports. Seven of these eight countries are in Europe. smart grids, supervisory control and data acquisition systems, and other digital infrastructure, they Three levels are needed for impactful diversi昀椀cation: can become vulnerable to cyberthreats. Thus, in the energy mix, electricity supply and consumption. cybersecurity measures and robust defences need Their importance is recognized by several of the to be prioritized to mitigate these risks as grids United Nation’s Sustainable Development Goals advance. The growing share of electricity in 昀椀nal directly or indirectly relating to electricity and energy demand due to electri昀椀cation, coupled with the rising diversi昀椀cation and consumption. Trends from the ETI unpredictability and frequency of extreme weather show that energy diversi昀椀cation is more advanced events, compounds the risks and vulnerabilities of than electricity diversi昀椀cation, with progress being energy grids in the ongoing energy transition. uneven; while the electricity mix is progressing, the energy mix remains stable. Some countries Maintaining global trust will be important in the that have successfully diversi昀椀ed their energy and future for ensuring stable energy supply and electricity mixes may now focus on improving quality demand at national and international levels. and reliability and reducing energy costs. Many Countries must have con昀椀dence in each other’s countries in the Sub-Saharan Africa and the Middle ability to honour their energy commitments, as East, North Africa and Pakistan regions, however, any disruption in the global market could have may need to 昀椀rst address energy access challenges severe consequences for economic and social before tackling grid infrastructure improvements stability. Interconnectors, both within countries and subsequent diversi昀椀cation efforts. Policies and across international borders, play a vital role also have an important role in driving innovation in facilitating this trust by enabling the ef昀椀cient Electri昀椀cation’s and expansion and in shaping energy systems to transmission and sharing of electricity, diversifying rise in 昀椀nal demand accommodate new technologies. The 2022 energy energy sources and promoting cooperation in the and extreme crisis incentivized renewable energy over gas in the face of geopolitical risks. The increasing activism weather events medium term. More incentives may be needed to of geopolitics, including the complex relationships increase risks for shift energy demand permanently towards clean between the Organization of the Petroleum energy and to accelerate electri昀椀cation. Exporting Countries, China, the United States energy grids in the and Europe, further emphasizes the importance ongoing energy Energy systems need to “withstand operational of interconnectors and ongoing cooperation in transition. disturbances, such as grid outages, planned ensuring a sustainable energy future. Fostering Effective Energy Transition: 2023 Edition 23