Energy crisis spurs renewable energy adoption, IRENA says

The global energy crisis, exacerbated by the war in Ukraine, is paradoxically accelerating the adoption of renewable energy sources, according to the International Renewable Energy Agency (IRENA).

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It is not primarily the climate that is the driving force.

Mike Enskat, head of IRENA's innovation and technology center, noted that the primary driver is not climate change but the immediate need for energy security and affordability. "It is not primarily the climate that is the driving force," he stated. When the Strait of Hormuz faced potential blockades, threatening a significant portion of global oil and gas, many nations reacted by lowering taxes and increasing subsidies. However, Enskat observed a new trend: "But we are also seeing now – for the first time during a crisis – that a tool governments are using is to accelerate the transition to renewables."

Examples of this acceleration include tax breaks for electric vehicles in Vietnam, Laos, and Kenya, and expanded charging infrastructure in Iceland and Australia. Spain has introduced tax relief for solar installations, while the UK is speeding up the rollout of balcony solar panels. This mirrors a previous trend seen after Russia's invasion of Ukraine, which caused gas shortages in countries like Pakistan, leading people to turn to solar power.

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But we are also seeing now – for the first time during a crisis – that a tool governments are using is to accelerate the transition to renewables.

"Most were not driven by political decisions, but by people starting to look for their own solutions as a reaction to rising costs and recurring power outages due to supply shocks. We are seeing that trend again," Enskat said. A key difference this time is the increased involvement of individuals and smaller businesses, rather than solely large state-owned energy companies. "The power grids have been affected by major blackouts, and if you want to keep the shop open, you have to look for alternatives, and then it's not primarily the climate you're thinking about," Enskat explained.

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Most were not driven by political decisions, but by people starting to look for their own solutions as a reaction to rising costs and recurring power outages due to supply shocks. We are seeing that trend again.

While official figures are pending, China's export of solar cells surged in March and April, with significant shipments heading to countries in Africa and Asia that are exposed to gas supply issues. Concurrently, there's a noted trend in investments to make coal power plants more flexible, allowing for faster start-ups and shutdowns, indicating a complex energy transition landscape.

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The power grids have been affected by major blackouts, and if you want to keep the shop open, you have to look for alternatives, and then it's not primarily the climate you're thinking about.