5th June 2025
Energy security
Interestingly the International Energy Agency was set up in 1074 during the then oil crisis with a mandate to ensure oil security. Since then it has expanded that role to include the security of natural gas, electricity and renewable energy supply chains. These supply chains – as experienced in recent years – are at risk from conflicts, embargoes, adverse weather, terrorism, cyberattack, and failures of national and international grid systems.
Amongst other measures, the IEA requires member countries to hold specific stock levels of oil to mitigate against disruption and spikes in cost. 180 million barrels of oil had to be released when Russia launched its invasion of Ukraine. That conflict and its impact on both oil prices and the supply and cost of gas, shook many countries as they became acutely aware of their reliance on these energy sources. In response many countries have sought to increase access to locally produced renewable energy.
Developing renewable energies – such as wind, solar and hydro – as well as developing large scale battery storage and enhancing the capacity of the grid are key components in ensuring a secure energy supply. This will become all the more important as the demand for electricity increases. The IEA reported this year that “[b]etween now and 2035, electricity demand is set to grow six times as fast as overall energy demand as a result of factors like the adoption of electric vehicles, air conditioning use, the digitalisation of the economy, the uptake of artificial intelligence and progress on expanding electricity access. Its share in final energy consumption is projected to double by 2050.” (1)
In the energy mix needed to secure this demand the IEA predicts that the use of gas will gradually decrease, whilst solar and wind will play a rapidly increasing role. Whilst oil and gas will be part of the global energy mix going forward, it will be so at a diminishing rate. Long term energy security lies with renewables, and faced with increasing demand for electricity, what is essential in making that increased volume secure, is investment now in the renewables sector – generation, storage and grid capacity.
The Green Tau 