A
global squeeze on energy supply that’s triggered crippling shortages and sent
power and fuel prices surging may get worse, according to the head of the
International Energy Agency.
“The
world has never witnessed such a major energy crisis in terms of its depth and
its complexity,” IEA Executive Director Fatih Birol said Tuesday at a global
energy forum in Sydney. “We might not have seen the worst of it yet — this is
affecting the entire world.”
The
whole energy system is in turmoil following the February invasion of Ukraine by
Russia, at the time the biggest oil and natural gas exporter and a major player
in commodities, Birol said. Soaring prices are lifting the cost of filling gas
tanks, heating homes and powering industry across the globe, adding to
inflationary pressures and leading to deadly protests from Africa to Sri Lanka.
Like
the oil crises of the 1970s, which prompted huge gains in fuel efficiency and a
boom in nuclear power, the world may see faster adoption of government policies
that speed the transition to cleaner energy, Birol said. In the meantime,
security of oil and gas supplies will continue to pose a challenge for Europe,
and also for other regions, he said.
“This
winter in Europe will be very, very difficult,” Birol said. “This is a major
concern, and this may have serious implications for the global economy.”
The
fallout for the global energy sector as the US and allies challenge President
Vladimir Putin over the war in Ukraine and seek alternatives to Russian exports
have highlighted the need to reduce dependence on fossil fuels, US Energy
Secretary Jennifer Granholm told the same forum.
“Our
move to clean energy globally could be the greatest peace plan of all,” she
said. “We want and need to move to clean.”
Nations
need to guard against switching reliance on one dominant energy supplier —
Russia — for another in the shift to clean power, Granholm said.
“China
has big-footed a lot of the technology and supply chains, and that could end up
making us vulnerable if we don’t develop our own supply chains,” she said.
The
nation controls about 80% of the global supply chains for solar power, which is
set to rise to 95% by 2025, according to the IEA. China dominates much of the
lithium-ion battery sector, is a key producer of wind turbines and seeking to
quickly build capacity in clean hydrogen technology.
Developments
including the US restricting imports of products from China’s Xinjiang region
and a long-discussed tax in Europe on the import of goods made with high-carbon
energy could help diversify the solar supply chain by creating openings for
manufacturers such as India, Martin Green, a professor at the University of New
South Wales, said at the conference.
“By
building resilient clean energy supply chains, we can protect our economies
from the shocks of the next crisis,” Australia’s Climate Change and Energy
Minister Chris Bowen said in a speech at the forum. “There is no time to
waste.”
(By David Stringer)
Mining.com