National Oil Companies’ Roles in Renewable Energy and Economic Diversification
27 May 2021
This event focused on potential roles that national oil companies (NOCs) could play in countries’ efforts to transition to cleaner energy and a more diversified economy.
A growing number of oil companies have announced intentions to shift their business model “from barrels to electrons” and to invest in renewable energy. NOCs are no exception, and some governments are looking to their NOCs to help drive growth in clean energy. Most of these plans have been short on detail however, and NOCs’ financial incentives and status within the legacy oil and gas industry create questions about their paths to adaptation. And while renewables can provide a sustainable alternative supply of domestic energy, they are unlikely to replace oil as an export commodity to underpin countries’ economies.
Can NOCs also promote and support development of new sectors to help meet their governments’ objectives of economic diversification? Speakers in this session examined the pros, cons and challenges associated with efforts to adapt NOC business models for a low-carbon future.
Joe Amoako-Tuffour, secretary and member of the Economic Management Team, Office of the Vice President, Republic of Ghana