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IEA Warns That Geopolitical Tensions Threaten Ener

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Posted On: 10/21/2024 4:53:44 PM
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Posted By: NetworkNewsWire
IEA Warns That Geopolitical Tensions Threaten Energy Security

The International Energy Agency (IEA) says rising geopolitical tensions are threatening global energy security and emphasizing the need for a speedy transition to clean energy. Economic and military tensions surging across many regions of the world have exposed major weaknesses in the world’s energy system and created significant risks for climate action and energy security.

IEA Executive Director Fatih Birol says geopolitical tensions could affect green energy supplies and the prospect of surpluses through the second half of the 2020s. Excess supply of liquefied natural gas (LNG), oil, and clean energies such as solar panels and batteries is projected to reduce energy prices through the decade, encourage green energy investments, and eliminate fossil fuel subsidies, he notes.

However, rising geopolitical tensions, coupled with fragmentation, could jeopardize this surplus and slow the global green energy transition. The ongoing Russian-Ukraine war, the Israel-Gaza war, and the Red Sea crisis all threaten to slow down production in some of the world’s largest energy-producing regions, potentially raising energy prices and making the energy transition more costly than it already is.

According to the IEA’s recent annual report, these geopolitical risks underscore the need to accelerate the global transition from fossil fuels to renewables. Fossil fuels such as coal and natural gas have powered the world for well over a century, but their impact on the atmosphere has been catastrophic and forced world leaders to go back to the drawing board and consider less damaging sources of energy.

Demand for fossil fuels will peak at the end of the decade as renewables take up an increasingly larger share of the global energy mix and the world barrels toward the ‘age of electricity,’ the latest World Energy Outlook (WEO) says. The IEA report predicts the onset of a new energy market characterized by an abundance of green fuels and technologies.

Low-emission energy sources will also produce over 50% of the globe’s electricity before 2030 as demand for oil, natural gas, and coal peaks in 2030. Even so, the report noted that while the world’s green energy capacity is expanding at an unprecedented rate, green energy deployment across markets and technologies is wildly uneven and susceptible to geopolitical factors.

This ‘Age of Electricity’ will also herald the start of an electrified energy system defined by surging electricity demand and an energy system that’s mostly based on renewable sources of energy. Electric vehicles and other green technologies will undoubtedly place great demand on energy grids, but abundant green energy supplies coupled with storage facilities will ensure the grids always have access to renewable energy.

Fortunately, EV technology is evolving rapidly and firms like Mullen Automotive Inc. (NASDAQ: MULN) are now bringing to market more powerful and more efficient models which can go further on a single charge. Over time, the expected strain on energy grids could fizzle out sooner than projected.

NOTE TO INVESTORS: The latest news and updates relating to Mullen Automotive Inc. (NASDAQ: MULN) are available in the company’s newsroom at https://ibn.fm/MULN

Please see full terms of use and disclaimers on the GreenEnergyStocks website applicable to all content provided by GES, wherever published or re-published: https://www.greennrgstocks.com/Disclaimer




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