- With growing calls for a complete global transition of the energy industry to green renewables, the weather-induced shortfall in energy in Europe casts doubt on such plans going forward.
- It turns out that even with a relatively minor segment of the energy supply dependent on intermittent energy, a sustained shortfall in renewables output can lead to crisis.
- Official and media response has been largely to frame the problem as a hydrocarbons supply shortfall, arguing for a further acceleration of green energy adoption.
- Investors should not take public statements as a reliable indication of where the global energy industry is headed. While it was downplayed publicly, the crisis should ring alarm bells in Europe and beyond.
- The lessons learned this fall and winter will serve to greatly reduce the appetite of governments around the world to emulate Europe's path towards growing dependence on energy sources that are affected by weather patterns.
For further details see:
EU Energy Crisis Leads To Very Quiet But Significant Paradigm Shift On Future Of Energy