I think there are two main goal of the "energy challenge." Broadly defined, I think the challenge will be to design, develop, and implement alternative sources of energy and fuel which produce energy in a way that 1) does not harm the environment/lessens our impact on climate change and 2) reduces a country's dependence on foreign products and increases reliance on domestically produced material. Note that an important implication of goal (2) is that the energy challenge will mean something different in each country and different countries (and different regions of a country) may require different solutions to the energy challenge (e.g. bioethanol may be a good solution in Brazil, but not elsewhere; hydrogen may be a good solution in Iceland, but not elsewhere).
Phrased differently, two criteria for alternative energy/fuel advancements are that the energy produced is 1) green and 2) economically favorable. (Of course, these terms still need more definition. What does green mean? Less damaging than fossil fuels? Carbon neutral? Do you look only at air pollution/carbon emissions or other factors such as water pollution?) Meeting these two criteria simultaneously is a problem because sometimes often a solution can effectively address one problem but not the other.
This definition of the energy challenge, however, ignores the social and policy aspects of the energy challenge, for example, how to fund the infrastructural changes needed to implement an alternative energy/fuel technologies.