Solving the energy crisis: what needs to be done?

THINK PAD

The energy crisis is real – all thanks to rise in inflation, fuel shortages, and increase in poverty and unemployment, alongside the expanding global electricity demand and diminishing economies.

An energy crisis happens when a region faces a significant shortfall in energy resources needed for electricity, heating, and other mechanical operations. This crisis has been intensifying since the year 2020, as globally the nations’ interdependence on energy resources has escalated. There are a lot of factors responsible for an energy crisis, ranging from geopolitical tensions to natural disasters.

In simple words, when we do not have enough supply of energy resources to provide sufficient energy to a particular area, we have an energy crisis at that location. Energy crises have happened in various regions of the world throughout the twentieth and twenty-first century. Industries of many countries are largely dependent on energy supply from other countries. If there is a slight shortage of energy supply from the second countries, it can affect the country’s economy due to socio-political tensions. This can become a major reason for conflicts between various nations.

Since 2021, the energy markets started to tighten because of numerous factors, including the rapid economic rebound following the pandemic. This situation turned dramatically to a global energy crisis that was followed by Russia’s attack on Ukraine. The price of natural gas surged, hence the electricity price also skyrocketed. Moreover, the oil prices reached their highest level since 2008.

Just as loads of factors have contributed towards the increase in energy prices, there are multiple solutions that can be employed to lessen its impacts. These solutions range from immediate cost cutting to long-term investment and should be adopted from the individual household level to the national governments.

To arrive at our destination, we can take multiple paths at the same time. Many governments started giving subsidies to low-income households, with efforts to contain the impact of the energy and electricity costs on their household bills. A lot of utilities are offering additional support to struggling customers who cannot pay their bills by giving them discounts and grants.

The shortest way to reduce the household bill is to utilize less energy. How can we do that? Simply by unplugging the devices that are on standby, optimizing boiler settings, and depleting batteries before recharging them. But we can have bigger savings by having better-equipped home devices.

Home improvements, such as better insulation, can reduce the amount of energy needed to heat a house. Also, the installation of solar panels and heating pumps can lead to a reduction in energy bills. However, to install each of these things brings upfront costs.

We also need to set a price for imported gas. The ultimate objective of this is to reduce the final price on the electricity bill. If it gets implemented, it will work as a measure to contain the price of electricity. The governments also need to fulfil their energy demand via nuclear reactors. The nations where nuclear power plants were shut down in order to prevent nuclear accident – they have to reactivate their nuclear power plants. The nuclear plants with a small amount of nuclear fuel can generate the electricity for roughly 12 years straight.

In the long term, nations must show transition, shifting their focus from the use of fossil fuels so that they are no longer dependent on them. Investments in renewable energy sources will aid the governments to achieve energy independence in the long run.