Identifying weak signals to prepare for uncertainty in the energy sector

• Published in: Heliyon 2023-11, Vol.9 (11), p.e21295-e21295, Article e21295
• Main Authors: Gilmore, Nicholas, Koskinen, Ilpo, Burr, Patrick, Obbard, Edward, Sproul, Alistair, Konstantinou, Georgios, Bilbao, Jose, Daiyan, Rahman, Kay, Merlinde, Corkish, Richard, Macgill, Iain, Lovell, Emma, Menictas, Chris, Bruce, Anna
• Format: Article
• Language: English
• ISSN: 2405-8440; 2405-8440
• DOI: 10.1016/j.heliyon.2023.e21295

This study aims to prepare the energy sector for uncertainty using a foresight tool known as weak signals. Weak signals (subtle signs of emerging issues with significant impact potential) are often overlooked during strategic planning due to their inherent predictive uncertainty. However, the value does not lie in precise forecasting but in broadening the consideration of future possibilities. By proactively monitoring and addressing these otherwise neglected developments, stakeholders can gain early awareness of threats and opportunities and enhance their resilience, adaptability, and innovation. A panel of technology experts identified eight weak signals in this study: 1) growing mistrust and local grid security measures, 2) consumer reactions to overly prescriptive policies, 3) long-term forecasting errors for thin-margin projects, 4) emergence of variable power industries, and 5) establishment of intercontinental transmission precedence; including three potential ‘wild cards’ requiring proactive mitigation: 6) escalating electrical generation dependence on continued imports, 7) a new threat surpassing climate change, and 8) mass deployment of low-emissions technology triggering a runaway loss of social license. Political factors were the predominant source of uncertainty, as decisions can suddenly transform the energy landscape. Economic, technological, and social factors followed closely behind, generally through the emergence of new industries and behavioural responses. While environmental and legal factors were less frequent, stakeholders should still adopt a holistic approach, as the signals were found to be highly interconnected. Organisations should also assess their local context when applying these findings and continuously update and respond to their own list of weak signals.