Energy Policy Issues

The latest reporting from the Financial Times highlights a point that energy analysts have been making for years: geopolitical shocks consistently strengthen the case for renewables, electrification and storage. Microsoft’s global vice-president for energy notes that oil and gas price spikes linked to the Middle East conflict reinforce the value of wind, solar and batteries in providing price stability. Once installed, renewables offer predictable cost profiles and reduce exposure to volatile global fuel markets. We saw this dynamic after Russia’s invasion of Ukraine. Europe accelerated solar deployment, heat pump uptake increased in several countries, and governments revisited questions of energy security through the lens of diversification and electrification. The underlying issue remains unchanged. Fossil fuels must continuously flow through complex global supply chains. When those flows are disrupted, prices spike and economies are exposed. Renewables, by contrast, are capital intensive upfront but deliver long term domestic supply and insulation from commodity shocks. There are short term risks. Inflation, higher interest rates and supply chain constraints can slow clean energy investment. Some governments may also respond by doubling down on gas infrastructure. The policy challenge is to avoid locking in further structural vulnerability. Energy security and climate policy are not competing objectives. In a world of recurrent geopolitical instability, they are increasingly aligned.

A major geopolitical shock in a resource-rich region, like the ongoing conflict in Iran, makes India vulnerable because of its huge import dependence in natural resources from below the ground. We need to immediately declare this sector a national priority, cut cumbersome processes and facilitate rapid increase in domestic production. We have such a progressive government that this can happen. Some risk has to be taken and we should take it. It will deliver massive returns in terms of jobs too. Young women are entering this sector in a big way. And there are talented Indians abroad who can do a ghar vapsi. Today, 90% of our oil is imported. This fuels our transport. 66% of our LPG is imported. We use it in our homes to cook. So is 50% of LNG, which goes into low emission public transport vehicles. Oil and gas are the biggest items in our import bill, around $176 billion per year, and any sharp rise in prices has an adverse effect on macroeconomic indicators like current account deficit, value of the rupee, fiscal deficit and inflation. The common man ultimately has to pay the price. Interestingly, our second highest import is gold, around $65 billion a year, the demand and price of which also soars in times of uncertainty. Oil, gas and gold account for almost 30% of our total imports. Government should exempt the sector from time-consuming regulations, including public hearing. The latter has already been done for critical minerals but needs to be done across the board for all processes and minerals. Environment clearances need to be on self-certification basis. Once a company commits to the Government’s rulebook, there should be no further process, only audit at a later time. Existing assets, most of which are owned by the government, should be utilized fully. At least 50% stake can be divested to proven people. Employees will get shareholding and a promise of no retrenchment. India cannot wait. The world is more unsettled and uncertain than it has been at anytime in my memory. There are no permanent friends or partners in today’s geopolitics. Self-reliance is more than a desirable aspiration. It is an immediate economic and strategic imperative.

⚡Is Australia's energy market on the brink of a major transformation? Recent developments suggest significant shifts in Australia's energy landscape. First of all, speculation has kicked off about a potential merger between EnergyAustralia and Alinta Energy. Such a union could create a $10 billion-plus entity, potentially reshaping the electricity and gas supply sectors by consolidating the third and fourth-largest players. It's been argued that such a merger would be able to better fund the transition away from coal-fired power generation for both companies and allow them to compete more effectively with industry giants like Origin Energy and AGL Energy. Secondly, a consortium led by Abu Dhabi's ADNOC Group, including The Carlyle Group, has proposed a $30 billion acquisition of Santos, one of Australia's largest gas producers. This proposal has sparked debates about national interest, energy security, and the implications of foreign ownership of critical infrastructure. Do you think such mergers and acquisitions lead to more efficient energy transitions, or could they stifle competition and innovation? And how do we balance the benefits of foreign capital with the need to maintain control over our energy resources? What are your thoughts on these developments? How should Australian companies navigate these components of the energy transition?

Exploring the Unseen Effects: How the Ukraine War Shaped Energy Markets? Since the invasion of Ukraine happened, the world's energy markets have really felt the impact in big ways. While we can see some of these effects right away, there are many more complex results hidden beneath the surface. These have changed how the whole world deals with energy. 📈 One often overlooked aspect is the shift in investment patterns within the energy sector. Uncertainty stemming from geopolitical tensions has led to a reevaluation of risk profiles, prompting investors to reconsider traditional energy sources in favor of more stable and sustainable alternatives. This transition not only reflects a growing awareness of the need for energy security but also underscores the pivotal role of geopolitical events in shaping investment decisions. Moreover, the Ukraine war has underscored the interconnected nature of energy markets, highlighting the vulnerabilities that arise from reliance on specific regions for energy supply. This realization has spurred efforts to diversify energy sources and enhance resilience against potential disruptions, driving innovation and collaboration across the industry. Beyond the immediate economic implications, the conflict in Ukraine has sparked conversations around the ethical dimensions of energy production and consumption. The spotlight on fossil fuel dependence has intensified calls for a transition towards cleaner, more sustainable energy sources, prompting governments and businesses to reevaluate their long-term strategies in alignment with climate goals. In the realm of energy security, the Ukraine war has served as a wake-up call, prompting stakeholders to reassess their approaches to risk management and contingency planning. The need for robust strategies to mitigate geopolitical risks and ensure uninterrupted energy supply has become increasingly apparent, paving the way for new frameworks and partnerships aimed at enhancing resilience in the face of uncertainty. Looking ahead, the lessons learned from the Ukraine war are poised to shape the future of energy markets in profound ways. Follow Ravi Choudhary for more such insights on #renewableenergy #sustainablenergy #solarenergy #renewableenergynews #sustainability

Two Wars, One Market: Can the Global Energy System Handle It? #ThinkingUnthinkable again? Maybe. Or maybe we’ve just forgotten how history works. The Middle East is boiling. Israel–Iran. Ukraine–Russia. Two regional wars running in parallel. Not the apocalypse - but it’s a stress test. And we’re not well prepared. For centuries, this was a normal operating environment. But after three decades of seamless trade and stable alliances, we’ve lost the habit of making decisions in geopolitically fractured systems. Now we need to rebuild that muscle - fast. 🚢 The Strait of Hormuz likely won’t be closed - it would be suicide for Iran’s regime. But a drawn-out war of attrition? Very much on the table. And that alone is enough to fuel volatility, tighten contracts, and rattle buyers. I discussed this in my recent interview with Gulf Intelligence - what’s truly dangerous is not the drama, but the slow grind of uncertainty: 🔗 Watch here: https://lnkd.in/dEqAfV48 But here’s the real kicker - energy policy is no longer about price signals alone. 🔹 China may go ahead with Power of Siberia-2, even without strong gas demand. Not for economics - but to signal strategic alignment with Moscow and permanent energy decoupling from the West. 🔹 The EU may fully ban Russian gas, including LNG - despite higher costs and market disruption. It’s political, not commercial. 🔹 Japan and South Korea are locking in Qatari LNG, even at high prices and long contract durations - not for margin, but for diversification from U.S./Russian supply. 🔹 Europe is backing costly uranium supply chains within the bloc to cut Russian and Kazakh dependence - another security-over-efficiency move. 🔹 SMRs are being fast-tracked in several countries - not because they’re cost-competitive, but because resilience has a new premium. And the list of #ThinkingUnthinkables goes on... 💡 This isn’t just about shifting molecules - it’s about redrawing the spheres of energy influence. Time to update the strategy playbook.

We all know the stats -- India currently relies on imports for over 85% of its crude oil and nearly 50% of its natural. We spend 3% of our GDP in buying oil! An increase of oil price from 70 to 85 dollars / barrel leads to another 0.6% current deficit. So volatile, yet we haven’t taken steps on time to reduce our exposure. It has been five years since we have been talking about bringing a Green Hydrogen Purchase Obligation (GHPO) on specific industries (like refineries, fertilisers). If even this could have been done on time, we would have reduced our import bills significantly. With the early onset of summers everywhere in the country, the electricity demand will go up tp 270 GW in the coming months, and with 8 GW of gas-based power plants having no gas, we have, only now, started pushing the commissioning of upcoming renewable plants. Knee jerk reactions, too little, too late. The urgency of shifting to renewable energy is at our door now. The world is on the brink of an energy blackout owing to the escalating situation in West Asia. It is imperative that countries take a hard look at their RE transition plans and redraw aggressive timelines to reduce their dependency on imported fuels and gases. On the government’s part, the emergency clearance of long-pending issues will be a strong signal for the industry to ramp up. With our sovereignty and regular public order at stake, the time for incrementalism has ended. We need to clear signal to renewable industry for massive ramping up.

My latest reporting for The Associated Press Press highlights a critical but often overlooked reality: global conflicts rarely stay regional. The escalating Iran war is already sending shockwaves through African economies. As oil prices surge to $100 this morning, and shipping through the Strait of Hormuz faces disruption, countries across the continent are bracing for higher fuel costs, rising inflation, and pressure on currencies. Why does this matter? Because Africa imports most of the fuel it consumes, making many economies highly exposed to global energy shocks. When oil prices rise and currencies weaken, transport costs jump, and so do food prices and everyday living expenses for millions of households. The story also reveals a deeper structural issue: even oil-producing countries such as Nigeria and Ghana may see limited benefits because they still import refined fuel. This reporting matters because it connects geopolitics, energy markets, and everyday life across Africa... showing how events thousands of miles away can quickly reshape inflation, economic stability, and policy choices across the continent. Read the full story here: https://lnkd.in/dnZHJVCA #Africa #EnergySecurity #GlobalEconomy #OilPrices #Inflation #Journalism #EnergyTransition

Australia must decide whether it wants to control its energy future or surrender it. The takeover bid for Santos by Middle Eastern giant ADNOC is a stark wake-up call for Australia. Over the past decade, Santos, once a cornerstone of Australia’s energy independence, has been steadily undermined by protracted regulatory delays and a relentless wave of activist-led legal challenges targeting its natural gas projects. Now, we face the absurd situation of building LNG import terminals to bring in gas from overseas, while sitting on vast undeveloped reserves at home. This is not just bad policy; it’s a direct threat to our national energy security. In an increasingly volatile and geopolitically unstable world, energy security is not optional, it is essential for economic resilience and national sovereignty. If we continue to ignore the warning signs, we risk sleepwalking into an energy crisis that cannot be fixed when the lights go out. Australia must decide whether it wants to control its energy future or surrender it.

It’s not every day you see $928 million used to STOP a project, because that’s what just happened in the US energy market. An offshore wind portfolio. ~4GW of capacity. Years of development. Stopped. And the capital redirected into oil and gas. This image shows what that decision actually represents and behind it, thousands of families: Engineers, vessel crews, fabricators, project teams. Companies built around making this work. This week, that capital was redirected, not because the wind stopped blowing, but because priorities changed. For years, energy systems have been optimised around two things: price and emissions and security was assumed. Recent events have reminded us that assumption doesn’t hold under pressure. So decisions shift, the capital moves and projects pause or are cancelled. The supply chains hesitates. Now, infrastructure like this doesn’t adapt at the speed of policy. You can redirect capital in a press release. You cannot rebuild capability, supply chains, and execution capacity overnight. Moments like this show how quickly short-term pressures can reshape long-term infrastructure decisions. That’s the real risk. Not whether we choose wind or gas, but whether we create a system where the rules change faster than the assets can respond. Because when that happens, we don’t just lose projects. We lose capability. And once that capability disperses, people, vessels, know-how, it rarely comes back in the same form. We don’t undermine the system in one decision. But we do it in volatility. The system doesn’t break because we choose wrong. It breaks when we keep changing what ‘right’ means. Where does this balance between security, price and emissions actually hold in practice?

Yesterday I joined Niaga Awani with Nina Rozman on Malaysia’s leading news channel Astro AWANI to discuss what the war in the Middle East could mean for oil and energy prices, and the knock-on effects for Asia’s economies. One thing I tried to emphasise is this: Energy is not just a commodity. It is the operating system of the real economy. When conflict escalates around key production regions and shipping routes, the first headlines focus on Brent prices. But the bigger story is the chain reaction that follows: 1️⃣Risk becomes a line item Even before “shortages,” markets price uncertainty through higher freight, insurance premiums, and longer lead times. That raises the delivered cost of energy for Asian importers. 2️⃣Inflation can return through the back door Energy feeds transport, power, manufacturing, food logistics, and services. That is how a geopolitical shock becomes a cost-of-living story. 3️⃣Central banks face an uncomfortable trade-off If growth is already soft, higher imported inflation forces policymakers to choose between supporting demand and defending price stability. 4️⃣Emerging markets feel it twice First through the import bill and current account. Then through currencies and funding conditions, especially where external debt is already a concern. 5️⃣The “second-order effects” can be bigger than the oil price chart Supply chains get rerouted. Inventories are rebuilt. Companies delay capex. Consumers become cautious. These behavioural shifts can matter as much as the price spike itself. For Southeast Asia, the takeaway is not to panic, but to be prepared. This is exactly why energy security and economic resilience are now board-level topics, not just government policy issues: 🛑diversify supply and routes 🛑build buffers and flexibility 🛑invest in efficiency, electrification, and regional connectivity 🛑stress-test budgets and business models for volatility In a world where disruption is no longer the exception, the countries and companies that win will be the ones that plan for uncertainty as the baseline. Thank you to Nina Rozman and the Niaga Awani team for the thoughtful conversation and check out the interview, link in the comments below. 👇 If you are running a business in Asia, what is the single biggest energy-related risk you are watching right now?