Energy Security

BACKGROUND GUIDE

LPS G20 MODEL | ENERGY SECURITY COMMITTEE Agenda: Future and Security of Energy: Moving towards an energy secure future

Dear Prospective Members,

At the outset on behalf of the Executive Board, we extend a warm welcome to all of you and congratulate you on being a part of the Future of Energy and Energy Security Committee being simulated at LPS Model G20 Conference 2025. The committee being simulated, would unlike most other simulations you must have heard of or been a part of; focus on political intellect, logical intellect, analytical application of thoughts, and strategic application of thoughts in addressing the issues at hand.

Kindly note, we are not looking for existing (impractical) solutions, or statements that would be a copy paste of what the person/group you are representing has already stated; instead, we seek an out of the box solution from you, while knowing and understanding the impending limitations of the person/group you represent.

Kindly do not limit your research to the areas highlighted below; but ensure that you logically deduce and push your research to areas associated with the issues mentioned.

The objective of this background guide is to provide you with a ‘background’ of the issues at hand and therefore it might seem to some as not being comprehensive enough. We feel that ‘study guides’ are detrimental to the individual growth of the delegate since they overlook a very important part of this activity, which is research. We are sure however that this background guide gives you a perfect launching pad to start with your research. But ensure this isn’t your only research. This guide shall deal only with a skeletal overview of the agenda(s).

Wishing you all very good luck.

Executive Board

I. INTRODUCTION

The global energy landscape is undergoing a transformative shift. From the growing dominance of renewable energy sources to increasing volatility in fossil fuel markets and the urgent demand for resilient energy infrastructure, energy security is no longer just about supply—it's about sustainability, technology, and global cooperation. As we move toward a more energy-secure future, the G20 plays a crucial role in ensuring that this transition is fair, inclusive, and efficient.

This committee will explore:

The future of global energy systems
Transition to renewables and the decline of fossil fuels
Role of energy futures contracts in stabilizing energy markets
Modernizing distribution systems
Innovation and investment in energy infrastructure

II. KEY TERMS

1. Energy Security – The uninterrupted availability of energy sources at an affordable price.

2. Energy Futures Contracts – Legal agreements to buy/sell a specific quantity of energy (usually oil or natural gas) at a predetermined price and date. They are critical for hedging risk and stabilizing energy markets.

3. Renewable Energy – Energy from sources that are naturally replenishing, such as solar, wind, geothermal, hydropower, and biomass.

4. Fossil Fuels – Natural fuels such as coal, oil, and natural gas derived from the remains of living organisms.

5. Smart Grids – Modern electricity networks that use digital communications technology to detect and react to local changes in usage.

6. Energy Efficiency – Using less energy to perform the same task, eliminating energy waste.

III. HISTORICAL BACKGROUND

1973 Oil Crisis: Triggered global concern about over-reliance on a few energy suppliers. Energy diversification became a priority.
Formation of the International Energy Agency (IEA): Created in response to the oil crisis to coordinate collective energy responses.
Kyoto Protocol & Paris Agreement: Highlighted the environmental impact of fossil fuel usage and emphasized cleaner alternatives.
Shale Revolution: Led by the U.S., the discovery of shale oil and gas altered global energy dynamics.
Post-2020 Trends: The COVID-19 pandemic emphasized the fragility of supply chains and the importance of energy independence.

IV. CURRENT SCENARIO

Renewable energy investment reached a record $495 billion in 2022.
Russia-Ukraine conflict disrupted global oil and gas supplies, prompting Europe to accelerate clean energy adoption.
Energy futures contracts are becoming increasingly relevant in price prediction and hedging.
Grid modernization efforts are underway in countries like the U.S., China, and Germany.
Battery storage technologies are becoming cheaper, solving intermittency issues with solar/wind.

V. KEY ISSUES TO BE DISCUSSED

1. The Future of Energy Systems

Role of AI and IoT in energy management.
Decentralized power generation through microgrids.
Rise of prosumers (producers + consumers).
Long-term planning with sustainable urban development.
Storage and transmission advancements.

2. Rise of Renewables vs. Decline of Fossils

Global investment trends and policy support.
Challenges in transitioning economies dependent on fossil fuels.
Technological innovation in solar and wind.
Environmental and social impacts of large-scale renewables.
Subsidy reforms and market integration.

3. Energy Futures Contracts

Importance in mitigating price volatility.
Role in geopolitical stability.
Accessibility and regulation in emerging markets.
Criticism: potential for market manipulation.
ESG (Environmental, Social, Governance) considerations.

4. Modernizing Energy Distribution Systems

Smart grids and real-time monitoring.
Upgrading aging infrastructure.
Cybersecurity in energy systems.
Role of public-private partnerships.
Enhancing rural electrification through innovation.

5. Energy Security in the Context of Climate Change

Integrating adaptation and mitigation.
Balancing national security with international cooperation.
Building climate-resilient infrastructure.
Migration and conflict triggered by energy scarcity.
Sustainable finance and green bonds.

VI. COUNTRY-SPECIFIC POSITIONS

1. Argentina

Dependent on fossil fuels but exploring shale (Vaca Muerta).
Investing in wind farms in Patagonia region.
National Renewable Energy Plan to meet 20% renewable by 2025.
Developing interconnection systems to boost grid resilience.
Seeking foreign investment for hydroelectric and solar projects. Case Study: RenovAr Program – attracted $7 billion in investments for renewable energy projects since 2016.

2. Australia

Major exporter of coal and LNG, faces pressure to decarbonize.
Leading investments in solar and battery storage (e.g., Tesla’s Hornsdale).
National Hydrogen Strategy aims to position Australia as a hydrogen exporter.
Renewable penetration challenges outdated grid infrastructure.
Controversial domestic fossil fuel subsidies vs. climate goals. Case Study: Hornsdale Power Reserve (Tesla Megabattery) – stabilized grid and cut energy costs.

3. Brazil

83% of electricity from renewables (mainly hydro and biofuels).
Expanding offshore wind and green hydrogen.
Amazon deforestation affects hydro output and climate commitments.
Energy trade within MERCOSUR and with EU under review.
Focus on ethanol and bioenergy leadership. Case Study: Proinfa Program – diversified Brazil’s renewable energy matrix in early 2000s.

4. Canada

Abundant fossil and clean resources (hydro, wind, solar).
Clean Energy Regulations target net-zero power by 2035.
Large investments in carbon capture and SMRs (Small Modular Reactors).
Interprovincial electricity trade expansion underway.
Indigenous-led clean energy initiatives gaining traction. Case Study: Pan-Canadian Framework on Clean Growth and Climate Change – integrates energy security and emissions cuts.

5. China

Largest global emitter but top investor in renewables.
Dominates solar PV, EV batteries, and wind turbine markets.
National Energy Administration promotes green transition.
Grid improvements and cross-border connectivity prioritized.
Still reliant on coal for base load power. Case Study: Belt and Road Energy Partnership – spreading Chinese green energy tech across the Global South.

6. France

Strong reliance on nuclear energy (70% of electricity).
Developing offshore wind and hydrogen strategies.
Part of EU Green Deal for carbon neutrality by 2050.
Advocates for energy sovereignty in EU framework.
Modernizing grid through smart meters and digital platforms. Case Study: RE2020 Policy – revamped building codes for energy efficiency in construction.

7. Germany

Energiewende policy pushing for full renewable transition.
Phased out nuclear; aiming to phase out coal by 2038.
Investing in hydrogen imports and smart infrastructure.
Energy crisis triggered by reduced Russian gas dependence.
Leader in feed-in tariffs and local solar initiatives. Case Study: EEG Act (Renewable Energy Sources Act) – revolutionized decentralized clean energy adoption.

8. India

Third-largest energy consumer globally.
National Hydrogen Mission and 500 GW clean energy target.
Heavy investments in solar (e.g., Gujarat, Rajasthan parks).
Grid modernization with smart metering and rural electrification.
Balancing development needs with decarbonization. Case Study: International Solar Alliance (ISA) – global partnership led by India promoting solar in developing nations.

9. Indonesia

Major coal exporter; domestic use is high.
Just Energy Transition Partnership (JETP) signed with G7.
Expanding geothermal and hydro capacity.
Policy uncertainty hampers renewable growth.
Electrification of remote islands a top priority. Case Study: JETP Agreement (2022) – $20B deal to accelerate decarbonization of Indonesia’s power sector.

10. Italy

Net importer of fossil fuels; vulnerable to supply shocks.
Green transition as part of EU NextGen Recovery Plan.
Solar and wind expansions with EU funding support.
LNG terminal construction to reduce Russian gas reliance.
Urban energy efficiency programs (Superbonus 110%). Case Study: National Recovery and Resilience Plan (NRRP) – includes €60B for green energy infrastructure.

11. Japan

Strong push for energy efficiency and hydrogen.
6th Strategic Energy Plan targets 36-38% renewables by 2030.
Reopening nuclear plants post-Fukushima.
Focused on energy storage and smart grids.
Import-dependent and investing in LNG, hydrogen partnerships. Case Study: Fukushima Hydrogen Energy Research Field (FH2R) – world’s largest hydrogen production facility from renewables.

12. South Korea

Hydrogen roadmap and carbon neutrality by 2050 target.
Heavy R&D in battery storage and smart grids.
Slow coal phase-out amid rising energy demands.
Private sector (Samsung, Hyundai) key in clean tech.
Promoting green financing and offshore wind. Case Study: Green New Deal (2020) – allocated $61B for digital and green energy investments.

13. Mexico

Oil-rich but growing solar and wind capacities.
Grid controlled by state utility CFE; discourages private renewables.
Controversial rollback of previous energy reforms.
High solar potential in northern states.
Prioritizing energy independence over liberalization. Case Study: Yucatán Wind Farm – one of Mexico’s largest renewable projects, providing clean energy to 200,000+ homes.

14. Russia

Fossil fuel superpower, especially natural gas exports.
Major geopolitical player in energy trade.
Limited renewable deployment; nuclear expansion ongoing.
Facing sanctions and demand drop post-Ukraine invasion.
Strategic pivot to Asian markets (China, India). Case Study: Nord Stream Projects – illustrate energy dependence and weaponization of energy in geopolitics.

15. Saudi Arabia

Oil-rich; Vision 2030 focuses on diversification.
Investing in green hydrogen and solar (NEOM, ENOWA).
Leading in CCS and energy-efficient desalination.
Maintaining global oil market influence via OPEC+.
Hosting Middle East Green Initiative. Case Study: NEOM’s ENOWA Project – aims to produce 650 tons of green hydrogen daily by 2026.

16. South Africa

Struggling with energy access and load shedding.
Reliance on coal but investing in solar and wind.
Just Energy Transition (JETP) deal with $8.5B support.
Eskom reforms for financial and operational stability.
Community-led renewable projects emerging. Case Study: REIPPPP (Renewable Energy Independent Power Producer Procurement Programme) – attracted $20B in investment since 2011.

17. Turkey

Energy demand growing rapidly; reliant on imports.
Strategic location as an energy transit hub.
Expanding solar, wind, and nuclear.
National Energy Efficiency Plan launched.
Facing inflation and affordability issues. Case Study: Karahasankaya Wind Farm – among the country’s largest and part of 2023 renewable expansion targets.

18. United Kingdom

Offshore wind leader with net-zero by 2050 law.
North Sea transition deal: moving oil workforce to clean energy.
Nuclear revival and interconnectors with EU.
Smart meters and EV infrastructure prioritized.
Hosting major green finance and carbon market reforms. Case Study: Contracts for Difference (CfD) Scheme – boosted UK wind power by offering long-term price stability.

19. United States

Leader in oil/gas and renewables.
Inflation Reduction Act ($369B) – historic energy package.
Grid resilience a focus after Texas 2021 blackouts.
Political polarization over fossil vs. clean transition.
Hydrogen Hubs and carbon pipelines in development. Case Study: Grid Modernization Initiative – U.S. Department of Energy-led program to future-proof infrastructure.

20. European Union (as a group)

Green Deal: climate neutrality by 2050.
REPowerEU: response to Russia energy dependency.
Emissions Trading System (ETS) expanded to new sectors.
Hydrogen accelerator projects across member states.
Massive investments in offshore wind and interconnections. Case Study: REPowerEU Plan – €300B roadmap to cut Russian gas imports by two-thirds by end-2023.

21. African Union (AU) – Invited Permanent Member

Energy poverty is the central concern (600M without access).
Focus on mini-grids, solar, and clean cooking fuels.
High dependence on foreign aid and investment.
Just transition crucial to avoid carbon lock-in.
Supporting transnational projects like Inga Dam, Desertec. Case Study: Desert to Power Initiative – aims to provide solar electricity to 250 million people across the Sahel.

VII. QUESTIONS A DELEGATE MUST CONSIDER

How can countries balance national energy security with global climate goals?
Should energy futures contracts be globally regulated to prevent speculation?
What role should governments play in accelerating renewable energy transitions?
How can developing countries afford energy modernization?
What are the best models of public-private partnerships for energy infrastructure?
Is green hydrogen the future of clean fuel?
How can smart grids enhance energy resilience during natural disasters?

VIII. BLOC POSITIONS

Developed Nations:

Focus on climate financing, net-zero targets, and technology transfer.

Developing Nations:

Emphasis on energy access, affordability, and foreign investments.

Oil Exporters:

Diversifying economies and investing in CCS (Carbon Capture & Storage).

Renewable Energy Champions (EU, Nordic states):

Advocating for strict emission limits, green financing, and innovation.

IX. CASE STUDIES

Case Study 1: The International Solar Alliance (ISA) – India-led Global Coalition for Solar Energy

Context: Launched by India and France in 2015, the ISA aims to promote solar energy deployment across 121 countries located between the Tropic of Cancer and Capricorn. Relevance to Agenda:

Energy Security: Reduces dependency on fossil fuel imports for developing countries.
Transition to Renewables: Provides technical and financial assistance for solar adoption.
Energy Equity: Focuses on capacity building and decentralized energy systems in the Global South.
Global Collaboration: A G20 initiative with multilateral participation.
Future Energy System: Promotes integration of solar into mainstream energy planning. Outcome: Mobilized commitments for over $1 trillion in solar investment by 2030.

Case Study 2: Hornsdale Power Reserve, Australia – World’s Largest Lithium-Ion Battery (Tesla Project)

Context: Developed in 2017 in South Australia by Tesla and Neoen after a series of blackouts and energy shortages. Relevance to Agenda:

Grid Modernization: Stabilizes power fluctuations with real-time response.
Energy Efficiency: Reduced grid costs by $40 million in its first year.
Resilience: Provides backup during blackouts and peak demands.
Innovation: Showcases integration of AI and storage with renewable sources.
Energy Futures: A template for combining renewables with energy storage at scale. Outcome: Became a global benchmark for battery-backed grid infrastructure.

Case Study 3: Just Energy Transition Partnership (JETP) – Indonesia & South Africa

Context: A climate finance mechanism where developed nations provide funding to coal-dependent developing countries to accelerate their clean energy transition. Relevance to Agenda:

Fossil Decline: Aimed at retiring coal plants faster.
Inclusive Transition: Supports workers and communities economically reliant on coal.
International Cooperation: Funded by G7 countries including EU, UK, and U.S.
Energy Futures Contracts: Structured financing models and performance-based funding.
Climate-Resilient Infrastructure: Encourages investment in renewables and grid upgrades. Outcome: South Africa secured $8.5B; Indonesia $20B – setting precedent for climate justice-based energy transitions.

X. EXPECTED OUTCOMES FROM DELEGATES

1. Comprehensive & Future-Oriented Energy Policy Proposals Delegates must develop holistic energy policies that address access, affordability, sustainability, and resilience. Proposals should reflect national priorities while aligning with global climate and energy goals.

2. Innovation-Driven Energy Transition Frameworks Delegates are expected to present forward-thinking models that integrate clean technologies, smart grids, energy storage solutions, and green financing tools to modernize energy systems and enable a secure energy future.

3. Strategic Pathways for Fossil Fuel Diversification Delegates should explore balanced approaches to reduce fossil fuel dependency through investment in renewables, green hydrogen, carbon capture, and circular economy principles — ensuring a just and inclusive transition for all.

4. International Cooperation & Technology Sharing Agreements Promote cross-border partnerships that facilitate joint R&D, capacity building, energy infrastructure investments, and equitable technology transfer, particularly for developing and vulnerable economies.

5. Actionable Blueprints for Energy Security ImplementationDelegates must formulate realistic and measurable action plans for national and G20-wide energy security strategies, complete with financing mechanisms, regulatory timelines, and stakeholder engagement.

6. Informed Debate & Consensus Building Effective negotiation is key. The final communique should represent a well-researched, inclusive, and solution-oriented roadmap for achieving global energy security, addressing geopolitical challenges, market stability, and climate resilience.

XI. FURTHER READINGS AND REFERENCES

International Energy Agency (IEA) Reports – www.iea.org
UN SDG 7: Affordable and Clean Energy – sdgs.un.org
World Energy Outlook – IEA Annual Report
BP Statistical Review of World Energy
Global Energy Monitor – www.globalenergymonitor.org
Brookings Institution – Energy Security Research
International Energy Agency (IEA) - https://www.iea.org/reports/world-energy-outlook-2023
United Nations Framework Convention on Climate Change (UNFCCC) - https://unfccc.int
International Renewable Energy Agency (IRENA) - https://www.irena.org/publications
Federal Energy Regulatory Commission (FERC) - https://www.ferc.gov
World Bank - https://www.worldbank.org/en/topic/energy

XII. CONCLUSION

As the world stands at a crossroads between the energy systems of the past and the sustainable pathways of the future, the decisions we make today will shape the security, stability, and success of generations to come. This committee offers a powerful platform for delegates to think critically, collaborate across borders, and champion innovative solutions to one of the most pressing global challenges of our time.

Whether it's investing in renewables, modernizing energy infrastructure, or fostering international partnerships, each policy proposed in this committee holds the potential to spark real change. As future leaders and changemakers, your voice matters — and so does your vision.

So come prepared, stay curious, and let’s work together to energize the future — one idea, one debate, and one solution at a time.

Wishing all of you the very best.

Regards, Executive Board