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efficiency by energy producers as well as end-users. In this context, regulators should consider the substantial capabilities of smart-grid technologies for achieving these objectives.Smart grids help manage electricity supply reliably and efficiently. Without them we will neither be able to maximise the use of renewable power nor achieve effective demand management. Smart grids can help manage intermittency, connection in remote areas, and connection of smaller generation sources; and offer greater flexibility in balancing electricity demand and supply - maximising efficiency in dispatching generation, and minimizing network losses. Smart grids also enable the provision of intelligent data/information flows to end-users and those operating the different elements of the network, and give greater flexibility to help maximise the contribution of renewable generation and minimise inefficiency. When applied together with smart generation, electricity interconnectors, back-up capacity, storage options and demand-side response, smart grids can open up new possibilities in managing power supply and demand, with potentially significant benefits in terms of security of supply, affordability and reduction of greenhouse gas emissions. engaging businessEngaging business in the policy discussion is crucial to ensure the workability of proposed policies, to gather feedback on their effectiveness, and to benchmark against global policy best-practice, since many businesses have a multinational presence and perspective. Effective solutions will only be delivered through unprecedented levels of public-private partnership (PPP), based on clear commitments, transparent policies, agreed outcomes and, crucially, efficient and effective deployment of financial resources. PPPs will be essential to attracting private investment at the necessary scale in major public infrastructure projects. Such approaches offer flexibility in securing diverse sources of up-front finance and funding, and the possibility of risk mitigation (by sharing it between those partners) where otherwise levels of risk may erode the net present value of low-carbon projects.PPPs help where projects are hard to finance on purely commercial terms, including where technology is deployed for the first time in a country (even if successfully demonstrated elsewhere) or where there is a need to simultaneously develop infrastructure, policy frameworks and supply chains. Governments should be active participants, co-funding projects and ensuring that they are aligned with national development priorities and implementation plans, including local capacity building.ConclusionThere is no single instrument which can drive the attainment of all three goals of the policy trilemma - energy security, access to affordable energy, and environmental impact mitigation. And the WEC Policy Assessment of 2011 underlines that no country performs consistently well in achieving all three goals, though several countries do so on two of them. The WEC Policy Assessment aims to help deliver more rigorous evaluations of energy-policy instruments to obtain more reliable evidence on what works and what pitfalls to avoid. The challenge then is to translate global findings about successful policy instruments into local arrangements and settings that work. This translation works best as a dialogue between international energy-policy experts, industry executives, and stakeholders and policymakers from the appropriate jurisdiction. Indeed, transparency in the formulation of policy frameworks may well be one of the best ways of giving confidence to investors through a better understanding of policy drivers and how to manage associated policy risk. This is crucial. The energy sector faces the challenge of making unprecedented levels of investment to broaden access to energy in developing countries; to replace ageing legacy infrastructure in developed countries; and to drive the deployment of cleaner technologies in both. Anything that increases the ease or attractiveness of investment must therefore be a priority for governments. Let us hope they rise to this challenge. The focus of the WEC Policy Assessment reports in 2012 and 2013 will be on what energy business leaders would like from policymakers, and vice versa. Our aim is thereby to help that dialogue contribute more effectively to addressing the daunting challenges of the energy trilemma. nABOUT THE AUTHORJoan MacNaughton, CB, is Chair of the World Energy Council's Assessment of Country Energy and Climate Policies and is Global Adviser on Sustainable Policies at Alstom S.A. She has been an influential figure in the energy policy debate in a variety of roles. These include the positions of Director General of Energy, overseeing the energy agenda during the UK Presidency of the EU and leading work on the energy proposals agreed at the G8 Gleneagles Summit; Chair of the Governing Board of the International Energy Agency; Honorary Fellow and President of the UK's Energy Institute; and Senior Research Fellow at the Oxford Institute for Energy Studies. She is a Companion of the Order of the Bath.Footnote1 International Energy AgencyPictured: Joan MacNaughtonENERGY SECURITY 047

How to integrate renewable energy sources and conventional fuels into the electrical gridKerem Metin, Vice Chairman, Investments and Operations, Metcap Energy Investments048 ENERGY security