Energy security and the climate change fight are closely linked. Following recent events, energy prices are increasing globally. Driven by a cost increase of conventional fuels (coal, gas, petrol). Export bans, war, and increased worldwide consumption not only are increasing consumer bills but also energy insecurity.
According to the IEA, energy security is defined as the uninterrupted availability of energy sources at an affordable price. European countries have seen on average an energy annual inflation of 27% in January 2022. Energy insecurity is becoming a major concern for most governments. The main driver is the variability of fossil fuel prices that drive energy prices up. These fossil fuels are the ones contributing to the power sector’s emissions. The electrification of economies and a competitive LCOE (Levelized Cost Of Electricity) of renewable energy are not sufficient to keep the prices low.
Global trends
Countries reopening after COVID and a global economy with all-time high energy consumption. In 2021 there was a record rise in coal generation, together with a rise in gas consumption. Causing the power sector’s CO2 emissions to increase by 7%. Which is the largest absolute yearly increase of all time. The fall due to COVID in 2020 was only 3%. At a moment when action is needed to avoid the most serious impacts on the planet, CO2 emissions keep rising.
Power sector emissions are at a new record of more than 12 billion tonnes of CO2. Totally opposite to meeting the 1.5℃ path. The power sector needs to reduce emissions by 60% in the next 8 years.
US and Canada
The US and Canada are seeing all-time high gas prices, and reduced energy security. Both countries are net energy exporters. This means that they produce more energy than they consume (Source: EIA, CER).
According to Reuters, gas prices reached a record high in the U.S. following Russia’s invasion of Ukraine, although prices have dropped since. With drivers from Los Angeles County paying an average of $6.03 per gallon.
Europe
European countries are all net importers of primary energy. Coal, lignite, crude oil, and natural gas are imported, but consumption is decreasing. Back in 2019, the main imported energy product was petroleum products, accounting for almost two-thirds of energy imports into the EU, followed by gas (27 %) and solid fossil fuels (6 %). And Russia is the main EU supplier of crude oil, natural gas, and solid fossil fuels. Europe is paying
A swift transition to renewable energy can provide energy security and reduce prices. Local reinvestment allows the creation of local jobs and wealth.
The energy dependency of European countries remains significant. An interesting case in Denmark where the policies to divest from fossil fuels made the country transition from a net energy exporter in 2000 to an importer in 2019. The sustainability commitment is seen in some countries, where energy dependence was reduced mainly by the development of green electricity production. The energy dependency of EU countries has increased since 2000. Countries cannot control energy prices, and cannot reinvest locally, often financing non-democratic regimes.
Not everything is bad news, renewable generation increased in 2021. Wind generation raised by +14% and solar by +23%. Some countries are phasing out coal. But still wind and solar only represent 10% of global electricity production. Even less when considering global primary energy consumption that includes other usages of energy such as heat and transportation.
Our Options
Each individual decision to reduce energy consumption, and switch to renewables contribute to increasing your personal energy security and reducing the effects of climate change. The first step is the most difficult one, and we’d like to make it as easy as possible for you (learn how to become carbon neutral). A fast transition to a clean energy economy will be critical to increasing global security.
At Decarb, our mission is your success in the fight against climate change. To that end, our adapted recommendations are updated to respond to your needs. Considering technology advances, data and financing, we recommend the best actions in a wide range of areas.
Reach out for more.
Featured Photo by KWON JUNHO on Unsplash
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