Unpacking the Energy Transition – Economic and Geopolitical Dimensions

Upgrading the energy mix with innovative technologies and higher energy density sources is a complex and multifaceted process. It requires a delicate balance between energy independence, economic stability, and environmental sustainability, all influenced by economic conditions. Given the complexity of the variables involved, achieving this improvement will require trillions of euros, to be paid by consumers, to reach an uncertain outcome if it is only the energy density that the current renewable energy sources can provide. Both natural gas and oil are crucial for electricity production, among other uses, because current alternative forms of electricity generation do not yet provide the desired efficiency. This is rooted in fundamental principles of physics and chemistry. Moreover, access to hydrocarbons is influenced by the conflicting political and economic choices of suppliers and buyers, determined by geopolitical criteria. The consequences of these dynamics are particularly painful for consumers, especially in Europe.

https://moderndiplomacy.eu/2024/10/16/unpacking-the-energy-transition-economic-and-geopolitical-dimensions/