What vulnerabilities does coal crisis expose?
Energy is vital for all resources. Thus, the energy crisis directly influences economic sectors such as the agriculture sector, industrial sector, unemployment, poverty, lower GDP, and higher inflation. Furthermore, it threatens the financial downturns that affect economic recovery. However, it brings out the opportunity to develop renewable energies. The crisis suggests the transition to renewables will be more complicated than expected. Over the next few years, world leaders will have to reconsider their energy mix and begin considering large investments in energy storage from solar and wind. Clean baseload power is essential for avoiding future energy problems. Nuclear power is a low-emission, baseload energy source with a proven track record. Another reliable baseload energy source is geothermal electricity, which is also renewable. Eventually, improved planning and investments in nuclear and geothermal power, as well as many other clean power sources, can lessen the potential of future price shocks. As global energy demand rises, the transition must prioritise supply stability. This energy crisis is a warning sign of what is to come if we do not adjust our energy transition regulations. The shift to renewable energies is not the only cause of the current energy crisis, but it is a significant contributor and, more importantly, one that we can address before power outages become commonplace. Our global energy demands will only increase, so any transition that results in a net loss of power generation will worsen situations. Another possible solution would be to break free from the commodity price cycle, increase clean investment. The human toll will be devastating, particularly in the countries severely hit by COVID-19. Some will argue that increasing gas output is the solution to the situation, but blaming renewable energy and climate action will be misdirected. Instead, the crisis highlights the need to invest in clean energy resources that is less vulnerable to volatile fuel supply chain.