It’s About Energy Security
There’s a big misunderstanding about the transition to renewable energy.
By Matt Badiali
This isn’t about climate change – at least not primarily.
It’s about energy security.
The Energy Information Agency (EIA), a global energy think-tank, defines energy security as “the uninterrupted availability of energy sources at an affordable price.”
We don’t have that right now. For proof, just look at what happened to Texans during an ice storm in 2021: the storm kicked up the energy needs of the people living in the state, and the power grid buckled. Outages left millions without heat or clean water.
This isn’t a new issue. In 1973, members of OPEC cut oil exports to countries that supported Israel during the 1973 Arab-Israeli War. It shook the U.S. market. Oil prices skyrocketed over 300%. Gasoline rations caused massive lines at gas stations.
It led to speed limits on highways (55 miles per hour!) and a push towards better gas mileage in cars. And it focused a spotlight on energy security.
The countries that have secure energy production are more secure than the ones that do not. And that lesson played out right before our eyes again in 2022, when Russia blackmailed Europe with oil and gas. Russia used its oil exports leverage to keep Europe from interfering with its invasion of Ukraine.
But the unintended consequence (and there are always unintended consequences) of that lesson was a boom in renewable energy projects. According to the EIA, the world will add 2,400 gigawatts of new renewable power by 2027. That’s enough to power all of China.
Those projections blew the EIA’s previous forecasts out of the water.
Renewable power will account for 90% of global electricity power growth through 2027. And while detractors will wail about the “woke mob” and “Climategate,” they miss the real driver. You can get wind and sun anywhere. You don’t have to import it from bad actors like Russia, Saudi Arabia, or the like.
That’s why we’re seeing this massive boom. And that’s why all the folks who think renewable energy is a boondoggle are wrong. Energy security is more important than border security. Because if you can’t power your industry, keep your people warm and fed, then you are at the mercy of the people who can.
This is a phenomenon that will continue to grow. And that’s why renewable energy is a trend worth investing in.
Numbers to Know
50 Facts for 50 Years
FACTS ABOUT OUR PLANET – 50 FACTS FOR 50 YEARS – Georgetown students developed this list of 50 compelling facts about our planet as part of our effort to mark the 50th Anniversary of Earth Day. (Georgetown University)
The last two years in a row that the MotorTrend “Truck of the Year” has been electric. This years winner, the Ford F150 Lightning. (CNN)
6.3 Billion Tons
What’s New in Sustainable Investing
When it comes to investing, women have helped fuel the explosion of ESG into the mainstream. In one recent report, 79 percent of women said they want their investments to reflect their values.
Seven states in the last year that have pledged to pull more than $3 billion collectively from BlackRock. Arizona and North Carolina are the most recent states to call attention to BlackRock, which in recent years has positioned itself as an industry leader in ESG investing.
Links We Like
The news this week has been abuzz with a nuclear fusion breakthrough. A lab produced a reaction that emitted more energy than it took in, a milestone in energy technology. US Scientist reach nuclear fusion breakthrough – CNN
Airbus developing innovative cryogenic tanks to make hydrogen powered flight a reality. Storage tanks for a hydrogen-powered aircraft are an absolutely essential component, but they are completely different to those you might find on a traditional aircraft.