The globalization of energy activities: what are the issues?

Globalization in many sectors such as information, research and development, finance, technology, etc. led to the implementation of transnational networks to facilitate decision-making. The result is that governments are left to regulation functions. This globalization also led to a larger gap between North and South. Developing countries represent 80 per cent of world population, yet only produce less than 33 per cent of gross domestic product (GDP). In the energy sector, developing countries have limited access to energy and use it less efficiently, since they do not master the latest technologies. States must retain their power to regulate this sector to ensure competition takes place in a fair environment within specified guidelines. Licenses must be issued through bidding or auctioned off, but in every case the State must ensure that commitments are met. It must also ensure that pricing is fair. Access for third parties to the power distribution system must be adequate, especially when the company operates in a monopoly environment. The State ends up managing a new category of risks (called major risks) that the private sector is not willing to consider, for example global warming or the management of nuclear waste. Confidence in market mechanisms is limited. Energy exchanges and others represent an economic growth factor and a potential guarantee for world peace. Who is responsible for the social costs associated with economic growth, and what are the solutions? A major issue left to decision-makers is the sharing of wealth within humankind and nations, and the State has a vital role to play. 5 refs., 5 tabs