⚡ Global Power's Out: Why?

Why are the world's most powerful economies struggling with power?

From India and China facing blackouts (check out our coverage on China's crisis here) to Lebanon's entire electric grid collapsing, the news is full of stories about the energy crisis. The power crunch has not even spared powerful European nations like the UK.

But, what is causing this crisis? Read on.

---

Ironically, the energy crisis is a result of both climate change and the very solutions to combat it. And well, like everything else, the Covid pandemic has a role to play here too. How?

Climate Change

For starters, the pandemic caused the whole world to shut down. This reduced the demand for oil and other energy sources. So, producers limited their production. But the faster-than-expected recovery from the pandemic has now led to a rapid increase in energy demand, which producers cannot meet immediately. And, what happens when demand exceeds supply? Prices go up (Economics 101). 

Coal prices have more than doubled this year and oil prices in the US crossed the $80/barrel for the first time in almost 7 years!

In addition to this, heavy rainfall due to climate change in countries like China and India has made coal mining difficult, leaving them without an important energy source. Climate change has also affected wind and water output, making wind energy and hydroelectric power more unreliable.

Aah. Should have paid heed to climate change talks earlier! Regret much?

Switch to Green Energy

Well, the problem has been made worse due to countries adopting measures to reduce climate change. How, you ask?

Looks like switching to green energy is the only sustainable long-term solution for our planet. But the entire world has risen to the occasion at the same time and ended up raising the cost of natural gas.

Now, what does natural gas have to do with green energy?

Though it is a fossil fuel, natural gas produces 45% less CO2 emissions than coal and 30% fewer emissions than oil. It is also more reliable than renewable energy sources. Explains why many countries have increased their reliance on natural gas, no?

Geopolitics

After a colder-than-usual winter, European countries that heavily rely on natural gas are facing reduced supplies. This is because many of these countries have closed down their fields over the past few years due to environmental concerns. 

In the past, whenever EU countries have needed more natural gas supplies, Russia has stepped up. But it is currently refusing to increase supplies and many believe the reason behind it is to get faster approval for its Nord Stream 2 pipeline.

The pipeline, which runs under the Baltic Sea to Germany, has been created to supply more natural gas to EU countries. Sounds like the perfect solution to their problems, right? 

But, many European countries and the US have criticised the project as they believe it will give Russia too much leverage over the other nations on the continent.

Renewable Energy

What about relying on renewable sources of energy? Like solar or wind power?

All of us have read and memorised the benefits of renewable sources of energy in school, haven't we? Time to act on those now.

But countries need to build solar panels and windmills on a large scale to get enough electricity. This not only requires massive infrastructure investments but also a considerable amount of time. So, even though many countries have begun investing in renewable energy, it will take some time before they can rely completely on it.

Additionally, unlike coal and natural gas, renewable energy cannot easily be stored. So, if the wind or water output is low at any given time, countries will have no option but to rely on coal or natural gas. 

So, what is the solution to this problem? Should we go back to relying heavily on fossil fuels? 

Many countries are currently taking that approach, at least for the time being. 

We've seen how this is disastrous for the climate, but we forgot to consider another important aspect: scarcity. 

Fossil fuels are limited, and we need to have an efficient plan to replace them before we run out of them.

Australia and the US are doing exactly that. For instance, California is plugging in giant batteries in its electrical grid to help power it during a heatwave. The batteries will charge the state's renewable energy-powered grid during an emergency, the same way a power bank charges your phone. 

Though this is a short-term solution that may not work out, innovations like this can help us make the shift to renewable energy over time and help fight climate change.

Do you think green energy will eventually become more reliable? Or will we have to find yet another alternative source of electricity?

---

Share this article with your family and friends on Twitter and Whatsapp.

If you are coming here for the very first time: Don’t forget to join us on Whatsapp to get daily updates! 👇