How renewable energy shields countries from oil shocks

"Energy is the lifeblood of our societies and our industries. And we're still highly dependent on fossil fuels. The world still gets about 80% of its primary energy from fossil fuels, the main source of greenhouse gas emissions driving climate change. That dependence makes economies and societies vulnerable to geopolitical shocks."

"Countries with a higher share of homegrown renewables in their energy mix are less vulnerable to these shocks. Once you bring the technology into the countries, the fuel you're using is the sun, is the wind, is the heat that is local. And this is a reason why renewable energy provides protection."

"The risk of Iranian strikes has essentially shut down the Strait of Hormuz, the crucial waterway used to transport 20% of the world's oil and gas. The disruption means fuel may struggle to reach the countries that depend on it to generate electricity, heat homes, power industry and run transport."

Middle East conflicts have disrupted global energy markets, with the Strait of Hormuz closure threatening 20% of world oil and gas transport. This supply disruption raises fuel prices globally and intensifies cost-of-living pressures. The world remains 80% dependent on fossil fuels, making economies vulnerable to geopolitical shocks. Countries with higher renewable energy shares experience greater resilience because renewables produce energy from domestic sources—sun, wind, and local heat—rather than relying on imported fossil fuels. While renewable technologies have global supply chains vulnerable to disruption, the fuel itself originates locally, providing protection against international energy market volatility.

Read at www.dw.com