Approximately a third of the rich world’s inflation of 8% is explained by soaring fuel and energy costs. All the while, the improvised chaos of the shifting energy supply world order has risks of delaying the clean energy transition. The needle we need to weave is to increase energy security / sovereignty while reducing emissions to achieve net zero by 2050. Some ideas below.
Thoughts?
- Ramp up fossil fuel projects (CCGT natural gas, NOT coal). But do so with artificially truncated lifespans supported by government offtake/guarantee. Fund innovative solutions to capture emissions at the source
- Double down on renewables – remove barriers to entry and speed up permitting and interconnection processes
- Go long nuclear while avoiding China’s China General Nuclear and Russia’s Rosatom, who have been the only companies that successfully built nuclear power plants in recent years (with the exception of EDF)
- Harden the grid through energy storage (both SDS and LDS), upgrade infrastructure to interconnect resource-rich regions with load-rich regions, expand demand response schemes, encourage behind-the-meter solar and storage
- Ensure externalities caused by all energy sources are transparent and priced in
