ENERGY TRANSITION: GLOBAL CHALLENGES AND DEVELOPMENT
The global social and political landscape is heavily influenced by the energy crisis, the phenomenon of climate change, and other environmental issues. Tense geopolitical relations and the ongoing conflict between Russia and Ukraine are causing significant shifts in the energy sector worldwide. This leads to new requirements and challenges for Governments.
The transition to clean energy is a major issue and a top priority for governments. Rivalry in the market and economies is evolving and closely linked to the shift toward green energy. Energy market demand and needs are primarily driven by international affairs, which have been highly disruptive and rapidly changing in recent years.
However, as previously mentioned, given that the energy transition is closely connected to global social, political, and economic developments, there are some inhibitory factors. One of them is the increased cost of systems using non-conventional energy sources, as well as the taxation imposed in cases where existing hydrocarbon-based systems are not replaced, particularly affecting low-income citizens. Additionally, there has been talk of a surge in natural gas prices as a direct consequence of the Russia-Ukraine conflict. Europe had to grapple with the loss of Russian natural gas through liquefied natural gas imports despite its transition towards clean energy. These were highly expensive investments that resulted in a sharp increase in natural gas prices, significantly burdening society.
Therefore, it is considered necessary for governments to take measures to encourage and facilitate a smooth energy transition for citizens, as the installation costs of Renewable Energy Sources systems to meet energy requirements, as well as electric vehicles, are quite high. It is particularly important to create incentives and support measures for citizens to actively participate in the fight against climate change and environmental crisis reduction. Furthermore, increasing investments and infrastructure in zero-carbon technologies are crucial.
