This round-up brings you key stories from the energy and materials sectors over recent weeks.
Top energy news: Power systems’ ‘conversion gap’ challenge; Energy storage falling short; How Latin America and the Caribbean can lead in clean fuels.
For more on the World Economic Forum’s work in the energy space, visit the Centre for Energy and Materials.
1. ‘Conversion gap’ a defining challenge for power systems
The power sector is central to economic growth, security and competitiveness, but available capital, proven technologies and growing policy ambition are not translating consistently into investable projects and delivered infrastructure at the pace required.
This ‘conversion gap’ has become a defining challenge for power systems, according to an executive briefing from the Clean Energy Ministerial and the World Economic Forum, in collaboration with Accenture.
Powering Growth: Bridging the Investment Gap in Electricity Systems says that reliable and affordable power infrastructure is a strategic priority amid geopolitical uncertainty and the growing need for resilience. The expansion of electrification and the power needed for AI and data centres are increasing the urgency to act.
But uncertain investment conditions, weak project development and delivery, asset-specific financing needs and limited public resources put up persistent barriers to progress.
Coordinated action across governments, regulators, investors and industry is needed to address these barriers, the paper says.
Two complementary sets of enabling conditions are particularly important to closing the conversion gap: regulation, policy and market design, which shape the broader investment environment; and bankability and risk allocation, which determine whether individual projects can attract and sustain investment.
2. Energy storage shortfall
The world is falling “well short” on its commitment to energy storage despite raised ambitions, according to Ember.
At COP29 two years ago, dozens of countries endorsed the Energy Storage and Grids Pledge to target 1,500 gigawatts of storage deployment by 2030.
National targets to deliver that goal have nearly tripled since but still fall 45% short, the energy think tank says, and almost all of the increase in ambition is accounted for by China and the European Union.
3. News in brief: More energy stories from around the world
Scaling Clean Fuels in Latin America and the Caribbean: Latin America and the Caribbean could become a global leader in clean fuels, according to a new briefing paper from the World Economic Forum in collaboration with OLACDE and Bain & Company. The region produces about 25% of the world’s liquid biofuels, but projects can be delayed due to policy uncertainty, fragmented demand and costly financing. Harmonized certification, demand aggregation and long-term investment structures can help the region grasp the opportunities.
Oil release accelerated: Members of the International Energy Agency (IEA) will speed up the release of emergency oil stocks as the global market continues to feel the strain of tight supplies. The IEA said members would move to complete the remaining releases of about 100 million barrels, including more than 20 million barrels of diesel.
Batteries beat gas peaking cost: Four-hour battery storage now beats gas peaking on cost globally, Wood Mackenzie says. The analyst’s latest report on the levelized cost of electricity shows that battery storage is now less expensive than open-cycle gas turbines across 43 markets in which both technologies were modelled, as turbine shortages and fuel volatility drive up peaking costs.
Tech firms eye mining stakes: Big tech companies are showing interest in buying equity stakes in mining in order to secure supply of metals, such as copper, aluminium and rare earth metals, needed for their products and AI data centres, the Financial Times reports. The CEO of global mining firm Anglo American told the paper it had held talks with companies but no such equity stakes had yet been taken.
Fusion ‘strategically important’: Western nations are now in a race with China to develop nuclear fusion, with technological capability and supply chains both gaining strategic importance, the head of the UK Atomic Energy Authority (UKAEA) says in the Financial Times. Economically viable fusion would unlock a new energy source as global electricity demand and energy security concerns rise, the UKAEA head says.
How the Forum helps leaders navigate the transition of energy and materials systems
The Centre for Energy and Materials connects leaders to make sense of the complex transitions reshaping energy, materials and industrial systems. It provides a platform to explore how energy security, affordability and sustainability intersect.
Through collaboration across value chains and regions, the Centre enables shared pathways that help partners align around practical solutions for a secure, low-carbon and equitable transition.
4. More on energy from Forum Stories
Energy, food and water systems are interconnected in a complex nexus through which vulnerabilities, trade-offs and disruptions can ripple. This affects these resources in different ways. Hyperlocal research is helping to understand these challenges and leading to new solutions. Read more here.
Europe’s high dependency on energy imports has in recent years translated into price volatility and high energy prices. This is harming competitiveness – average European Union industrial electricity prices are typically about 50% higher than in China and about twice those of the United States. To counter this, the continent must rapidly scale a clean, independent power system anchored by wind, solar and a modern grid architecture, argue experts from Ørsted in this article.
Why is the price of gold surging? It shot up by 64% in 2025 and reached an all-time high at the start of 2026. The key driver: uncertainty, according to James Emmett, CEO of precious metals company MKS PAMP. See more in the video below:
To learn more about the work of the Centre for Energy and Materials, contact Ella Yutong Lin: ellayutong.lin@weforum.org
