The Tamesis
The head of the International Energy Agency said that the world’s most serious energy crisis triggered by the Iran war will accelerate the development of global renewable energy, nuclear energy and electric vehicles.
The current energy shortage is “worse than in 1973, 1979 and 2022 combined,” IEA executive director Fatih Birol said in an interview with France’s conservative newspaper Le Figaro on Tuesday.
Birol said the war would lead to “changes in the architecture of the global energy system.”
ALSO WATCH AF: Asian fuel importers eye Saudi ports amid uncertainty over Strait of Hormuz
“It will take years. It will not be a solution to the current crisis, but there will be a profound shift in energy geopolitics,” Birol said.
However, he added that some technologies will develop faster than others.
“This is the case with renewables such as solar and wind, which are being installed very quickly. We will be moving to renewables very quickly, probably within a few months,” Birol predicted.
The current energy crisis is linked to Tehran’s blockade of the vital Strait of Hormuz, which began last month in retaliation for U.S. and Israeli attacks on Iran.
At least 25% of the world’s crude oil and nearly 20% of liquefied natural gas exports pass through the strait, making it one of the most important waterways on Earth. Asian countries in particular rely heavily on the Middle East, whose fuel exports mainly pass through the Strait of Hormuz.
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Solar Energy Savings in Pakistan
The IEA forecast was backed by analysts who said solar power will get a boost Buffered the full impact of the war For cash-starved Pakistan.
A study published last month assessed that the spread of solar power around 2018 helped the country avoid more than $12 billion in oil and gas imports as of February this year.
Renewables First and the Center for Energy and Clean Air Research say it could save a further $6.3 billion by the end of 2026 at projected market prices.
Earlier this week, the Islamabad government announced a jaw-dropping increase in petrol prices of 42.7% and diesel prices of 54.9%.
This has led to protesters taking to the streets, queues at petrol stations and the government announcing free state-run public transport for a month.
Locals told AFP that “fuel has become beyond the reach of ordinary people” and “ordinary people can no longer afford fuel for motorcycles or cars.”
However, rooftop solar panels help the country’s more than 250 million citizens receive uninterrupted electricity and avoid long-term cuts in grid supplies, especially when temperatures soar.
They have also helped ease the burden caused by shipping disruptions in the Gulf, said Nabia Imran, an energy analyst at Renewable Energy First in the capital, Islamabad.
“As the people of Pakistan have adopted solar power over the past few years, this… has provided a buffer against the crisis in the Strait of Hormuz, especially in the power sector,” she said.
“Had we not adopted solar in the first place, the impact on the power industry would have been much more severe.”
“Black April” concerns
Pakistan’s solar surge doesn’t mean it won’t be affected by fuel supply shortages. Asian countries are also not much more developed than Pakistan.
South Korea, India, Myanmar, Thailand and the Philippines have taken a variety of unprecedented measures to address energy shortages, including increasing coal use to maintain energy security.
The IEA’s Birol insisted that countries must be “as prudent as possible” in the short term to conserve energy. He also warned of the prospect of a “Black April”.
“If the strait does remain closed throughout April, we will lose twice as much crude oil and refined products as we did in March,” he said, noting that the waterway is also a key transit point for fertilizers.
As of Tuesday, Iran and the United States had declared a ceasefire, but the agreement remains unstable.
As a fragile truce settled, Kuwait, the United Arab Emirates and Bahrain reported Iranian attacks, dashing hopes for a quick return to normalcy in many countries.
On Wednesday, Iranian Foreign Minister Abbas Araghchi also raised the issue of “ceasefire violations” with mediators after Israel launched its deadliest attack yet on the Lebanese capital Beirut.
Senior officials have warned that Tehran may withdraw from a truce over the attacks.
- AFP, with additional editing and input by Vishakha Saxena
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