How the Iran war is changing the renewables landscape
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The Middle East conflict is driving some countries to accelerate their renewable energy plans, a new International Energy Agency report shows.
Why it matters: The war's effect on LNG and oil supplies is spurring what could be lasting changes in energy markets and policy decisions.
- Energy security is driving expansion "as more countries seek to reduce their exposure to imported fuels," IEA head Fatih Birol said in a statement.
The big picture: IEA's latest annual analysis projects renewable power capacity rising nearly 4,800 gigawatts from 2026-2031, 57% more than the prior six years.
- IEA forecasts that renewables will generate 43% of global electricity in 2031, up from a third last year.
Zoom in: Some governments have set more ambitious targets in response to the Iran crisis, while others are accelerating existing plans.
- South Korea hopes to reach 100 GW of renewable capacity before 2030, ahead of an earlier timeline.
- Egypt moved its 45% renewable electricity target to 2028 from 2035 as its gas import bill has soared.
State of play: In terms of what's already happening on the ground, IEA reports that African and Southeast Asian imports of Chinese solar equipment "rose drastically" in the three months after the war began.
Yes, but: In Europe, higher power prices linked to the Middle East conflict haven't yet brought big policy changes or a "measurable acceleration in installations," IEA finds.
- Supply chain disruptions are threatening to delay some projects in the Middle East.
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