Iran has been seen as focusing on renewable energy investments with a focus on security and not climate.
Executives at the CERAWeek Conference in Houston said that energy security concerns, which once limited investment into renewable energy, could now accelerate its growth more than climate change worries. This is because oil and gas supplies are facing a new wave of uncertainty due to the war against Iran.
The U.S. and Israeli war against Iran has?removed a?million barrels of oil per day from the global markets, causing energy prices to reach multi-year-highs and causing shortages of fuel in countries that rely on oil and natural gas flowing through Strait of Hormuz.
After the Russian invasion of Ukraine in 2020, the current Middle East conflict will be the second major disruption in energy markets within four years. Spiking oil prices may encourage a shift to renewables, as they are a more reliable alternative.
Oil and gas, on the other hand, are more dependent on global markets.
The lesson from the past few years is that cost matters. "Wind plus solar plus battery is an increasingly compelling economic option, and countries are pursuing it not as a climate goal but for economic access to energy, and ironically, increasingly as an energy-security option," Geoffrey Pyatt said at the Conference.
Katherina Reiche, Germany's Federal Ministry for Economic and Energy Affairs, said that energy shortages may occur in late April or early May if Iran's war does not end. She also added that the phase-out of nuclear power was a big mistake.
According to the International Energy Agency (IEA), nuclear power accounts for around 44% in France's power generation mix. Energy executives claim that this gives France greater security with its?supply of power.
"France is among the countries with the lowest carbon footprints in the world. It didn't achieve this because it wanted the planet to be saved. Jeff Currie is the chief strategy officer at Carlyle's Energy Pathways. He said that France got to where it is to stop exactly what was happening.
Currie stated that "one of the biggest predictions we can make is the fact that the energy transition will be accelerated."
The expectation that oil demand will fall is fueled by the rising price of crude. Karim Fawaz is the director of global refining and products markets at S&P Global Energy. If this trend continues, people may choose to buy electric vehicles or work from home. He added that "this is less likely to reverse itself."
Around a fifth of all energy in the world flows through the Strait of Hormuz - the chokepoint of the Middle East Gulf. Iranian attacks also targeted refineries, gas stations and export terminals located in Saudi Arabia Kuwait Qatar, United Arab Emirates, Bahrain and the United Arab Emirates, further tightening supply.
Need to be secure
Ditte Jorgensen, Director General for Energy at the European Commission, said that since Russia invaded Ukraine in '2022, it has increased investments in renewable energy, electrification, nuclear, and interconnectors.
She added, "We need to do this to feel secure and less dependent on volatile global markets."
Lithuanian Energy Minister Zygimantas Vasiciunas said that Lithuania plans to generate 60% of its energy needs from renewable sources this year. This is up from 50% by 2025.
Jovita Neliupsiene said that the European Union "would never" increase its Russian gas imports.
Speakers also stated that the disruption of energy supplies was more severe during this year's Iran?war than after Russia invaded Ukraine in 2022.
In an interview with Equinor's CEO Anders Opedal on Tuesday, he said: "Diversity is a problem that needs to be addressed at the country level. It makes sense to have countries look at how they can diversify while still having energy security, affordable and sustainable energy." (Reporting and editing by David Gregorio in Houston, Georgina Kelly and Stephanie Kelly from Houston)
(source: Reuters)
