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How Renewables Ensure Energy Security for Countrie

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Post# of 127
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Posted On: 07/01/2025 4:38:02 PM
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Posted By: NetworkNewsWire
How Renewables Ensure Energy Security for Countries

As volatility in the global energy sector forces countries to pay higher and higher prices for oil, natural gas, and other fossil fuels, pivoting to renewables could help nations fortify themselves against price and supply chain instability and ensure energy security.

Despite concerted efforts to transition to renewables like solar, wind, and geothermal energy, most of the world still relies on fossil fuels for its energy needs. This means shocks or disruptions to the global energy supply chain, such as when Russia halted natural gas exports to Europe, often have major economic consequences on a global scale.

The ongoing Israel-Iran tensions, as well as past geopolitical upheaval in the Middle East, a region that exports a significant share of the world’s fossil fuels, have impacted the energy security of countries located thousands of miles away.

By making countries less reliant on energy imports, renewables can help them develop energy security and become more resilient to energy industry disruptions and shocks. Unlike fossil fuels, renewables like solar and wind are often located close to end users, eliminating the need to transport energy over long distances. In addition to minimizing transmission losses, localized renewable sources of energy also ensure that communities are fortified against shocks in the larger energy industry.

Regardless of what happens in the Middle East or Russia, an American community or town that’s fully reliant on green energy won’t have to deal with high prices or energy shortages.

In contrast, if, for instance, Iran were to follow through with its threat to close the Strait of Hormuz, global access to fossil fuels would be significantly disrupted, and oil, gas, and other fossil fuel prices could surge to record highs, potentially plunging the world into an energy crisis. At least 27% of the world’s crude oil and around 20% of natural gas pass through the Strait, making it a key cog in the global energy supply chain.

In a world where most nations generate their own energy via renewables, events such as the ones currently occurring in the Middle East wouldn’t have such a major impact on the global economy. Renewables would essentially insulate nations against the disruptive effects of geopolitical tensions, at least in relation to their energy supply chains, and ensure they have stable power despite energy industry disruptions.

When renewables are paired with energy storage infrastructure to address the intermittency inherent to green energy, they can become an incredibly reliable source of power. Unfortunately, nearly 80% of the global population lives in nations that still import oil, and 90 countries cover over 80% of their energy needs with oil imports. Until renewables become the dominant source of energy worldwide, countries will never achieve true energy security.

Companies like SolarBank Corp. (NASDAQ: SUUN) (Cboe CA: SUNN) (FSE: GY2) have an opportunity to address the growing need for energy storage as the uptake of renewable energy surges across the world.

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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