[MUSIC] The agenda for the evening is first I would like to invite Mr. Sadamori to deliver his opening statement. >> Thank you, thank you for the introduction. Is this okay? So my name is Keisuke Sadamori, I'm the Director of Energy Market and Security at the International Energy Agency. So this is about the energy markets and security and security stands for mostly the oil emergency response. The around the oil security but these days the we have expanded the scope of the energy security to cover natural gas supply security as well as the electricity supply security as well. So let me start with the very brief introduction on what we were talking about when we say energy security. So in the short term, the energy security mostly about the sudden loss of availability of the resources caused by the difference in speed between the laws of supply or surge in demand and the market response. So one crucial element is if the few can be substituted, so energy security becomes the serious issue when there are no short-term substitution. And the typical example is oil security in that respect, so oil is still the dominant field in transport sector, filling more than 90% of the transport demand. So large-scale supply disruptions of oil can lead to the paralysis in transportation, which is a crucial element of our economy. We can, driving maybe could wait but the deliveries by trucks cannot. So when we consider the mess on the street due to the refinery strikes in France, which finally required the government intervention by the use of SPR release, the need to additional preparedness is quite obvious. Another example is the natural gas, the heating demand in winter in Europe. So worry over the supply security of Russian pipeline gas in 2008 and 9, and 2014 more recently, is due to the lack of difficulty with field substitution of residential heating in the city at winter time. So that's about the kind of a short-term, the agent security definition. In the medium to longer term, the energy security is more about the structure of energy supply and demand, and here the key concept is diversity. So having diverse energy mix and avoiding excessive dependence on single fuel, is very important here. So transport fuel is still difficult to diversify, maybe but at least their supply sources of oil, for instance, that can be diversified. Power generation sector is where this diversity matters typically. So many countries have diverse power generation sources with natural gas, coal, oil, in some countries, nuclear, wind, solar PB, hydro, geothermal, biomass and others. Even when sudden loss of a certain fuel, like the nuclear going offline in post Fukushima situation in Japan, the other fuel sources like natural gas, oil, and later coal fill the gap together with the strong electricity conservation drive. The country managed to avoid the major blackouts and these days, the oil is not used so much for the power generation except for oil-rich, Middle East countries like Saudi Arabia, but Japan in 2011 to 2014, or 15 was a rare exception. So utility heavily dependent upon an oil-fuelled power plants which are normally used only to cover the summer peak time. So the big question, for instance, for Japan is how long they could maintain such very outdated oil-fired power generation capacities and also the oil supply chains to support that for the pure security reasons. And the one thing that we need to take note is about the contribution from energy efficiency. So energy efficiency market support in 2017, I recall, shows that the Japan phased out this strong energy conservation drive which started immediately after the nuclear power accident, it lasted until around 2013. Very strong, the energy conservation, not the efficiency, conservation drive but the conservation drive was somewhat phased out after 2013 but the electricity demand did not come back to pre-Fukushima level. And this shows that the energy conservation gradually was substituted by the energy efficiency. So energy efficiency has contributed to the energy security by decreasing the level of fuel required. And we all know that, we often hear that the best and the safest power plants are those not built. And renewable sources, talking about the renewable sources, they are mostly indigenous, indigenous domestically produced. So reduce the import requirement of those various fields, that itself is positive for the energy security. But the variable renewables like wind and solar brings in another type of operational security issues into power market. So world is in outlook, world, the energy outlook in 2018, last year, focused on electricity and its key message there is that the enormous amount of flexibility sources will be required as a share of variable renewables like wind and solar goes up. It doesn't mean that the power system cannot cope with such high share of variable renewables but new and improved market designs would be required. The current market design does not reward capacity and the flexibility contributions of the potential original sources so we're outlook atarting to introduce the concept like the value adjusted the levelized cost of electricity. We called it VALCOE in order to capture the system value of each type of generation sources. So many countries have also introduced or is trying to introduce the various systems like the capacity mechanisms or their targeted reserve systems in order to adjust the system and have safety net in terms of the generation capacity adequacy. There is also an issue over generation diversity in low carbon world to happen in the future. At this moment in the tracking clean energy progress report by the IAEA, only solar PV is on track to achieve the sustainable development path. Wind is also growing very strongly, but last year, it was downgraded to yellow, more efforts needed. But wind and solar overall are growing very strong compared with this group of variable renewable sources. Dispatchable low carbon sources like nuclear, hydro, geothermal or even the CCU is carbon capture and use and storage power generations are not on track at all. So we consider that the governments would need to intervene to let these other low carbon technologies to grow, while of course accelerating the wind and solar PV deployment as well. If they are serious about both achieving the Paris Agreement target, but also to achieve the electricity supply security for the future. So that's my very general opening remarks, thank you. Look forward to the discussion here, thank you. >> [APPLAUSE] >> Yes.