- Oct 6, 2021 11:36 pm GMT
Energy transition is a reality; the pathways and speed were always debatable!
WHAT CRITICS ARE SAYING ABOUT RECENT MARKET MOVES
Demand destruction for fossil fuels during pandemic does not accelerate the pace of transition.
The global oil demand is almost close to pre-pandemic levels challenging the over-enthusiastic proponents of accelerated energy transition. Once airline travel restrictions are removed the demand will grow further.
Consumer habits haven’t changed all that much: consumers still want a warm home, power, the latest tech gadgets, and to be able to freely travel and spend money.
The share of renewable energy sources in electricity generation continues to rise, but renewables are incapable of meeting the rebounding power demand,
The energy transition and decarbonisation are decade-long strategies and do not happen overnight
A rushed transition without considering the still enormous role that fossil fuels play in the economy and consumers’ lifestyle risks exposing the global energy market to supply crunches and price spikes.
THE TRENDS NOT MENTIONED
The energy transition is real and pathways and speed are both important. Asia-pacific region is growth engine fueling the energy demand! The recent trend indicate that while secure, reliable, affordable and accessible energy supply is paramount, so are the changing attitudes of governments and customers in the region that are demanding clean low emission energy.
- The rapid rise of wind and solar in China and India
- Increasing shift in coal-to-gas strategy in power-plants
- Increasing demand for green natural gas and LNG and global emission credit markets
- Increasing trends of use of CCS projects coming on stream in Asia.
Indeed, IEA is saying that well-managed energy transitions would be the solution - not the problem - “The links between electricity and gas markets are not going to go away anytime soon". Gas remains an important tool for balancing electricity markets in many regions today.
A well managed energy transition is recognized. The present energy transition, however is fundamentally different than previous ones in a way it is strictly time bound. The pathway maybe debatable but taking off foot from accelerator will have serious climate consequences.
No discussions yet. Start a discussion below.
Get Published - Build a Following
The Energy Central Power Industry Network is based on one core idea - power industry professionals helping each other and advancing the industry by sharing and learning from each other.
If you have an experience or insight to share or have learned something from a conference or seminar, your peers and colleagues on Energy Central want to hear about it. It's also easy to share a link to an article you've liked or an industry resource that you think would be helpful.