The energy sector’s catchphrase is ‘shift into clean energy,’ but getting there will not be cheap and easy as it requires massive capital and huge scale of industry regulatory changes that must be initiated by government.

While the race is on to create a new world of energy – one that leans on cleaner technology and sources, outgoing Royal Dutch Shell chief executive Jeroen van der Veer articulated that “industry and government regulations must change on a huge scale and at an unprecedented pace.”

He noted that based on a study by the International Energy Agency (IEA), the magnitude of investments for renewable energy sources alone would reach as much as $5.5 trillion until year 2030.

On top of that, billions of dollars of investments are also required for the upgrading of electricity transmission networks to handle increased and the on-and-off power generated by wind and solar.

The bulk of investments, the Shell executive said, “will come from private companies, but governments will need to continue using tax credits and other incentives to encourage the growth of renewables.”

The transition from fossil based-economy to renewables and other alternatives is also seen to be very long and winding – a phase that may take until year 2050.

Mr. van der Veer emphasized “to judge from society’s experience with nuclear power and other technologies, new technology sources take at least 25 years to reach significant scale.”

Citing wind’s potential, he illustrated that “the world will need another 1-1.5 million turbines covering an area nearly the size of France in order to reach 10 per cent of electricity generated by 2030.”

Biofuels will also take their share in the pie, but it will take decades before they can displace at least 10 per cent of what is being supplied by conventional diesel and gasoline today.