Our new system value framework can power the energy transition

The World Economic Forum, in collaboration with Hitachi ABB Power Grids and Accenture, has developed a system value framework to replace the sole reliance on the levelized cost of energy (LCOE) in energy transition decision-making. This holistic approach incorporates dimensions such as economic impact, job creation, climate change mitigation, and grid resiliency to ensure sustainable and effective decarbonization. The framework is designed to be flexible across different geographies and stakeholders, supporting the integration of renewables through digitalization and focused grid investments.

• The traditional reliance on the levelized cost of energy (LCOE) is insufficient for the energy transition, necessitating a 'system value' approach that considers broader social, economic, and environmental impacts.
• The new system value framework, created by Hitachi ABB Power Grids, the World Economic Forum’s Electricity Industry community of CEOs, and Accenture, uses multiple dimensions to measure value, including climate change mitigation, job creation, and economic impact.
• Critical components of the framework include accounting for physical and cyber resiliency and the flexibility needed to manage real-time supply and demand complexities across the entire power value chain.
• The framework is designed to be flexible, as the prioritization of system value dimensions varies by geography based on local needs and the maturity of the energy transition.

APA

Facchin, C. (2020). Our new system value framework can power the energy transition. World Economic Forum. https://www.weforum.org/stories/energy-transition/system-value-approach-power-the-energy-transition/

Chicago

Facchin, Claudio. Our new system value framework can power the energy transition. World Economic Forum, 2020. https://www.weforum.org/stories/energy-transition/system-value-approach-power-the-energy-transition/.

Wikipedia

{{cite press release |last1=Facchin |first1=Claudio |title=Our new system value framework can power the energy transition |publisher=World Economic Forum |date=12 October 2020 |url=https://www.weforum.org/stories/energy-transition/system-value-approach-power-the-energy-transition/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{facchin2020our, author = {Facchin, Claudio}, title = {{Our new system value framework can power the energy transition}}, publisher = {World Economic Forum}, year = {2020}, month = oct, url = {https://www.weforum.org/stories/energy-transition/system-value-approach-power-the-energy-transition/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }