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The worldwide energy crisis has seen inflation rise to its highest point in four decades. In fact, the 7.4% increase in April 2022 was the biggest rise in inflation since the mid-1980s.
And while prices have stabilised recently, gas, oil and electricity will start soaring again in the future.
There has never been a more urgent need for self-sustaining renewable energy sources.
Energy prices will continue to rise for as long as we rely on fossil fuels. Many countries, including the UK and US, will reduce their demand for Russian gas in protest against the war in Ukraine by the end of 2022.
And although this seems like a positive move, it has the opposite effect.
With countries looking to other countries for supply, this allows the new suppliers to increase prices when there is no other viable alternative. And these inflated costs are, yes, you guessed it, passed on to the customer.
Then there’s China.
China is currently still in COVID-19 lockdown, but when it starts opening up again, a surge in demand for energy will likely push prices up further.
Right now, the outlook on switching to renewables isn’t brilliant. A report by the International Renewable Energy Agency (IRENA) states, “The energy transition is far from being on track and anything short of radical action in the coming years will diminish, even eliminate chances to meet our climate goals.”
And their report also found:
All of which feels like bad news, but there is some light at the end of the tunnel. IRENA also states that while 80% of the world’s countries import energy, 100% of the world has access to renewable sources.
Renewables offer a way out of importing energy for every country, and investing in green energy will create jobs, lower costs and drive economic growth.
And there is more good news.
On 16th June 2022, Black Rock announced it intends to launch an infrastructure investment programme focused on energy security to help high polluting companies become greener.
Edwin Conway, head of Black Rock’s alternative investments sector, said, “Inflation is high, so you can’t turn off fossil fuel today and turn on renewables tomorrow. There aren’t enough projects. Our intention is to work with large energy companies. They’re huge human capital employers and are also looking to the future.”
The transition to renewables will be challenging, but it’s still possible to meet the 2030 targets. But we all have to act now 一 politically and individually.
There is always a risk with investment, but renewable energy is one of the safest ways to ensure a good return on investment. Although initial investment might be substantial for individuals and businesses, the overall reduction in energy use will pay for itself long-term.
While on a global economic scale, the Global Renewables Outlook report by IRENA states that although it will cost $19 trillion worth of investment, the benefits will be somewhere between $50-142 trillion by 2050.
Not to mention the positive impact on the environment.
The energy crisis and inflation affect us all, but Inteb can help your business switch to renewable energy alternatives faster and easier.
How?
With Inteb Renewables.
Renewable technology is a vital part of every net-zero roadmap. And assessing which technology is right for your business depends on several commercial and technical factors, including:
With spiralling costs of fossil fuels caused by supply, demand and world politics, businesses have the opportunity to position themselves as cost-effective, carbon-neutral and, in some cases, self-sustaining.
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