The first big energy shock of the green era from TheEconomist https://www.economist.com/leaders/2021/10/16/the-first-big-energy-shock-of-the-green-era
Eugene Van Den Berg Oct, 2021
From the above article, The Economist writes:
“Next month world leaders will gather at the cop26 summit, saying they mean to set a course for net global carbon emissions to reach zero by 2050. As they prepare to pledge their part in this 30-year endeavour, the first big energy scare of the green era is unfolding before their eyes. Since May the price of a basket of oil, coal and gas has soared by 95%. Britain, the host of the summit, has turned its coal-fired power stations back on, American petrol prices have hit $3 a gallon, blackouts have engulfed China and India, and Vladimir Putin has just reminded Europe that its supply of fuel relies on Russian goodwill.The panic is a reminder that modern life needs abundant energy: without it, bills become unaffordable, homes freeze and businesses stall. The panic has also exposed deeper problems as the world shifts to a cleaner energy system, including inadequate investment in renewables and some transition fossil fuels, rising geopolitical risks and flimsy safety buffers in power markets. Without rapid reforms there will be more energy crises and, perhaps, a popular revolt against climate policies.”
Over the past 30-years or so, Renewable Energy (RE) wind and solar failed to capture sufficiently enough energy marketshare to have stored off the current global energy crisis notwithstanding vast subsidies.
Contributing to the challenges are the demand for RE component parts stemming from critical commodities like Lithium, Copper, Cobalt and many more, that are used in manufacturing such parts. These commodities too experiencing demand that exceeds supply, and the last few years are only the start of a massive drive to accomplish energy transition goals. What will demand and pricing likely look like over the next few years.
Electric Vehicles (EVs) too showing strong growth and demands more copper and microchips than Internal Combustion Engines (ICEs). Microchip supply chains are under strain and so are the supply chains of other RE core commodities.