Renewables won’t replace fossil fuels anytime soon

Against the background of rising gas prices and a shortage of coal, an energy crisis that is far from subsiding, a complete rejection of traditional energy carriers and the transition to green energy is becoming an increasingly ‘distant future,’ Report informs referring to Bloomberg Green.

This global energy crisis is the first, but certainly not the last.

“But the actual switch will take decades, during which the world will still rely on fossil fuels even as major producers are now drastically shifting their output strategies,” reads the report.

At the same time, a number of world publications and energy experts believe that the global demand for oil and gas will continue to grow for more than a decade, which will certainly also affect the use of renewable energy sources and the transition to green energy.

“Even after 2050, global oil demand is set to continue to rise because renewables cannot entirely replace fossil fuels,” energy markets expert Anas Alhajji said during a recent energy conference hosted by Nigeria.

Given all the current and anticipated challenges, many prominent politicians remain positive and continue to call for a green energy transition.

“Energy prices are rising globally. Gas prices almost doubled compared to 2020 and producers are not increasing supplies sufficiently, despite rising demand. But renewables prices have remained stable. EUGreenDeal and renewables are the solution to rising electricity prices,” President of the European Commission Ursula von der Leyen tweeted.

“US and European policy makers continue to turn the energy crisis into a debate over renewables versus natural gas. It shows a lack of basic understanding that renewables are reliant on nat. gas. Gas is needed for a stable electric grid and as back up,” Brenda Shaffer, energy analyst in Foreign Policy Magazine, tweeted.

The energy crisis is affecting almost every part of the globe with record high energy prices, limited supplies and power outages. Some of the world’s richest countries and states in the US, such as California, are struggling to keep their electricity systems stable.

“The current energy crisis is particularly acute in Europe. Prices for natural gas, coal, and electricity have exploded, leading to protests over household power bills in Spain, 1970s-style gasoline shortages in Britain, and worryingly low supplies of natural gas across much of the continent as a possibly very cold winter is fast approaching,” the Foreign Policy reports.

Among the reasons for the gas crisis in Europe is a decrease in its production in 2020 related to low business activity due to COVID-19, a reduction in investment, the lack of large gas storage facilities (storage facilities in the UK are designed for less than 6 percent of the annual demand, in Germany, France, Italy – 20 percent of the annual consumption in each of these countries).

Speaking about the decrease in investments in this area, it is worth noting the publication of the Financial Times, which reports that even despite the rise in oil prices, investments of large energy companies and countries continue to decline. Instead, oil countries are re-opening themselves as clean energy powers.

“One broker recently wrote that of his firm’s 400 institutional clients, only one was still willing to invest in oil and gas. Even in shale oil, a corner of the market dominated by private players, rising prices are triggering an unusually weak increase in supply,” Financial Times reported.