Renewables gain traction: War in the Middle East set to reshape the energy landscape

The worst energy crisis caused by the war in the Middle East will accelerate the development of renewables, nuclear power and electric vehicles. Fatih Birol, executive director of the International Energy Agency (IEA), predicted this in an interview with French newspaper Le Figaro.

Birol recalled that the current energy crisis is more severe than the crises of 1973, 1979 and 2022 combined. Despite the sharp rise in fuel prices caused by Iran’s blockade of the strategically important Strait of Hormuz, he said there are reasons for optimism, given how the “architecture of the global energy system” will change.

“It will take years. It will not be a solution to the current crisis, but the geopolitics of energy will be fundamentally transformed,” Birol said.

Some technologies will develop faster than others, he said. This applies especially to renewable energy sources such as solar and wind power, which can be installed very quickly. “We will start turning to renewables very soon, probably within a few months,” Birol said.

The crisis should also revive interest in nuclear power, including small modular reactors, he said. Some countries are also likely to extend the lifespans of existing power plants to secure additional capacity, while electric mobility will also expand.

The IEA chief nevertheless stressed that countries should conserve as much energy as possible in the short term, and warned of the threat of a “black April”. If the strait remained closed throughout April, the world would lose twice as much oil and oil products as it did in March, he said. Birol also pointed out that this sea route is crucial for transporting fertilisers, AFP reported.